In classical tra¢ c ‡ow theory, there are two velocities associated with a given level of tra¢ c ‡ow. Following Vickrey, economists have termed travel at the higher speed congested travel and at the lower speed hypercongested travel. Since the publication of Walters’classic paper (1961, Econometrica 29, 676699), there has been an on-going debate concerning whether a steady-state hypercongested equilibrium can be stable. For a particular structural model of downtown tra¢ c ‡ow and parking, this paper demonstrates that a steadystate hypercongested equilibrium can be stable. Some other sensible models of tra¢ c congestion conclude that steady-state hypercongested travel cannot be stable, and that queues develop to ration the demand in steady states. Thus, we interpret our result to imply that, when steady-state demand is so high that it cannot be rationed through congested travel, the trip price increase