NYC to Implement Surge Pricing Downtown During Peak Hours: Kiplinger Economic Forecasts
The city will introduce "congestion pricing" in 2024.
Road congestion is nothing new, but it is always frustrating. In looking for new ways to combat heavy traffic, some big cities are charging motorists more money for their time on the road. To help you understand what is going on and what we expect to happen in the future, our highly-experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts (Get a free issue of The Kiplinger Letter or subscribe). You'll get all the latest news first by subscribing, but we will publish many (but not all) of the forecasts a few days afterward online. Here’s the latest...
More cities are looking at charging drivers a fee to enter downtown areas. New York City is the first place on track to implement congestion pricing, for much of lower and midtown Manhattan. Other major U.S. cities will study the use of this pricing system for their downtowns, especially if the New York plan proves successful.
Several crowded foreign cities already have tried congestion pricing — including London, Singapore, Stockholm and Milan and most have reported success. Charging a fee to use certain highways or lanes during peak hours in urban areas has been done for years in the U.S., but it is a new idea for downtowns specifically.
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In New York City, Manhattan drivers can expect to pay as much as $23 at peak hours, with reduced pricing for low-income motorists as well as taxis and rideshare drivers. The program is expected to bring in $1 billion annually and reduce vehicles entering Manhattan by as much as 20%. The city is targeting a spring 2024 rollout.
This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to The Kiplinger Letter.
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