A recent report from the city of Los Angeles reveals significant challenges in the production of new housing.
In the past year, the city permitted more than 17,200 housing units, generating concern among advocates as this comprises only about 30% of the required annual construction needed to meet state housing goals.
Under California state law, Los Angeles must plan for over 456,000 new homes between 2021 and 2029, with approximately 185,000 designated as affordable for low- and very low-income residents.
This requirement highlights a growing crisis in housing affordability, as a substantial majority of L.A. renters allocate over 30% of their income to housing—considered unaffordable by federal standards.
Despite the pressing need for new housing, the pace of construction is alarmingly slow across all segments, including low-income and market-rate housing.
Azeen Khanmalek, executive director of Abundant Housing L.A., expressed disappointment in the latest permitting figures but noted that this trend has been anticipated.
Khanmalek pointed out, “Housing advocates citywide have seen this coming for the last several years. We have not seen fundamental change in the way we regulate housing and land use in the city of Los Angeles.”
Clara Karger, a spokesperson for Mayor Karen Bass, acknowledged that the city faces various economic pressures that hinder housing growth.
However, she highlighted the mayor’s initiatives, such as Executive Directive 1, aimed at accelerating the approval process for low-income housing projects.
According to Karger, these measures have successfully reduced project application wait times by 75% and expedited the approval of over 30,000 units.
The latest progress report faced delays due to unprecedented fires, which contributed to the postponement of its submission beyond the original deadline of April 1.
Now submitted, the report shows L.A. has fallen short in achieving necessary housing targets.
During the last year, only roughly 3,000 of the permitted homes were affordable for local low-income residents, a stark contrast to the housing goals set forth by state regulators.
The overall number of permitted homes saw a slight decrease from 18,618 in 2023 and a significant drop from 23,422 in 2022.
Several factors have contributed to this downturn in housing production, including soaring interest rates and escalating costs for materials and labor—elements not easily controlled by local authorities.
Nevertheless, many housing advocates believe that local policy decisions play a crucial role in the slow development.
For instance, Measure ULA, also known as the mansion tax, imposes a levy on real estate sales exceeding $5 million.
This measure directs revenues toward tenant assistance and affordable housing development but draws criticism from advocates who argue it might actually discourage new housing construction.
Zennon Ulyate-Crow, a volunteer with YIMBY Los Angeles, poses a significant question regarding the tax: “Why are we putting new taxes on multi-family apartments where people like me could potentially afford to live?”
A recent study echoed this sentiment, indicating that exempting newly constructed apartment buildings from this tax could lead to a net increase in affordable housing units.
Ulyate-Crow supports the mansion tax idea but emphasizes the importance of ensuring it targets wealthier residential properties rather than affordable, multi-family units.
Despite the current obstacles, some housing advocates express cautious optimism regarding future developments in L.A.
Khanmalek noted positive developments, including the city’s consideration of a self-certification program, which would enable builders of smaller projects to affirm their plans are ready for construction, streamlining the permitting process.
Furthermore, efforts by the City Council to amend building codes to accommodate single-stairway buildings may allow for more apartment units within existing spaces.
“There are these little things that are really heartening,” Khanmalek said regarding these potential changes.
In addition to local initiatives, pending state legislation such as Senate Bill 79 could further enhance residential development opportunities.
Combining denser housing projects with proximity to transit, this bill promises to unlock more regions of Los Angeles for apartment construction—areas that currently face strict restrictions.
Presently, about 72% of the city’s residential land continues to be designated solely for single-family homes, highlighting the need for comprehensive changes in land use policies to meet housing demands.
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