Both points you made are valid but neither fixes or even touches on the problem being discussed: there are more cars than parking spots and this causes problems

Both points you made are valid but neither fixes or even touches on the problem being discussed: there are more cars than parking spots and this causes problems. The economic theory is an interesting, albeit completely parallel discussion. Price is just about who gets to have one. Effectively you'll still have 150 cars that cannot be parked next to the owners' residence, that get dumped on the street elsewhere probably in the next lower cost neighborhood, and with the additional issues OP mentioned. Put it another way, if you want to solve the housing crisis and I tell you "owners can set whatever price they want for the house to extract maximum value and nobody who can afford that will be denied the house" am I wrong? But did I solve the problem?