Starting in a month, San Francisco will begin changing the way it sets prices for meters on all its streets, according to SF Gate. The SF MTA will measure parking demand for all of its 30,200 meters across the city. Every 3 months, parking occupancy rates will be tabulated. Areas with high parking occupancy will have their rates raised, while areas with low parking occupancy will have their rates lowered.

 The goal is to encourage people to park on streets and neighborhoods that are currently underutilized, and increase parking turnover for highly in-demand spaces. The MTA wants there to be at least one space available on each block. Prices will not rise more than $.25 per month. Rates will eventually be as low as $.50 or as high as $8 at peak times.Of course, setting demand-based pricing is far easier to do with data-driven analytics derived from programs like ParkSight.

 San Francisco already uses demand-based pricing for 7,000 meters, and has been experimenting with this program since 2011. Other cities, such as Pittsburg, have also been reaping the benefits of demand-based street pricing. San Francisco, however, is the first city to embrace demand-based pricing across its entire stock of paid spaces. It’s a strong step towards San Francisco becoming a smart city of the future.