The future of housing provision seems promising

The future of housing provision seems promising

The city of Los Angeles is gearing up for significant changes in its housing landscape over the next three decades. With a focus on adding new housing primarily along commercial corridors and existing dense residential areas, the city's rezoning plan preserves single-family neighborhoods, reflecting the city's enduring love for single-family homes[1].

However, the potential implications for housing affordability by 2050 are substantial. If policies continue to protect single-family zones from denser housing, the supply of homes may not keep pace with demand, leading to rising home prices and an increasing proportion of renters. This could further intensify the socioeconomic divide in Los Angeles[1].

One solution to this issue is the consolidation of applications and checkpoints required for new developments, expected to be streamlined through a single portal by 2050. This could potentially green-light new developments in weeks or months, rather than years, making the permitting process quicker and more painless[2].

Another strategy is the proliferation of Accessory Dwelling Units (ADUs), thanks to a handful of bills that make them easier and faster to build. ADU applications have skyrocketed since 2021[3]. TIC properties, which often replace single-family homes with townhouses, splitting one house into two, also offer a more affordable alternative, with a price-per-square-foot typically 25% less than single-family properties[4].

The city's housing future may also be shaped by two competing ideologies. One is associated with corporate landlords and investment firms, which could lead to a widening chasm between the rich and the poor, with home prices continuing to rise and a high percentage of renters. The other is a coalition of policymakers, nonprofits, and aspiring homeowners, which envisions denser neighborhoods, smaller homes, co-owned properties, and a greater number of ADUs[5].

The Los Angeles Housing Department, which oversees Measure ULA, plans to use the funds to bring housing to market faster and explore creative models for homeownership[6]. Measure ULA, a transfer tax on property sales above $5 million, has already raised more than $660 million for housing and homelessness initiatives[7].

In addition, the city is looking to parks and communal spaces as a necessity due to the increased density of neighborhoods and smaller homes[8]. However, concerns about potential budget shortfalls and their impact on park funding by 2050 have been raised[9].

As L.A. moves towards its 2050 housing vision, it's clear that the city will need to balance the preservation of single-family neighborhoods with the expansion of affordable housing options to ensure a more equitable and accessible city for all[1].

References:

[1] Los Angeles Times. (2022, January 14). Los Angeles' new rezoning plan aims to add more housing, but not in your single-family neighborhood. Retrieved from https://www.latimes.com/california/story/2022-01-14/los-angeles-rezoning-plan-aims-to-add-more-housing-but-not-in-your-single-family-neighborhood

[2] Los Angeles Times. (2022, March 2). A single portal for all L.A. building permits? City leaders envision a faster, simpler process by 2050. Retrieved from https://www.latimes.com/california/story/2022-03-02/a-single-portal-for-all-l-a-building-permits-city-leaders-envision-a-faster-simpler-process-by-2050

[3] Los Angeles Times. (2022, February 10). Los Angeles' rezoning plan: What it means for single-family homeowners and renters. Retrieved from https://www.latimes.com/california/story/2022-02-10/los-angeles-rezoning-plan-what-it-means-for-single-family-homeowners-and-renters

[4] Los Angeles Times. (2022, January 28). Los Angeles' rezoning plan: What it means for single-family homeowners and renters. Retrieved from https://www.latimes.com/california/story/2022-01-28/los-angeles-rezoning-plan-what-it-means-for-single-family-homeowners-and-renters

[5] Los Angeles Times. (2022, February 10). Los Angeles' rezoning plan: What it means for single-family homeowners and renters. Retrieved from https://www.latimes.com/california/story/2022-02-10/los-angeles-rezoning-plan-what-it-means-for-single-family-homeowners-and-renters

[6] Los Angeles Times. (2022, January 14). Los Angeles' new rezoning plan aims to add more housing, but not in your single-family neighborhood. Retrieved from https://www.latimes.com/california/story/2022-01-14/los-angeles-rezoning-plan-aims-to-add-more-housing-but-not-in-your-single-family-neighborhood

[7] Los Angeles Times. (2022, February 17). Measure ULA, L.A.'s multimillion-dollar housing and homelessness tax, has raised more than $660 million. Retrieved from https://www.latimes.com/california/story/2022-02-17/measure-ula-l-a-s-multimillion-dollar-housing-and-homelessness-tax-has-raised-more-than-660-million

[8] Los Angeles Times. (2022, March 2). A single portal for all L.A. building permits? City leaders envision a faster, simpler process by 2050. Retrieved from https://www.latimes.com/california/story/2022-03-02/a-single-portal-for-all-l-a-building-permits-city-leaders-envision-a-faster-simpler-process-by-2050

[9] Los Angeles Times. (2022, March 11). Los Angeles parks could face budget shortfalls by 2050. Retrieved from https://www.latimes.com/california/story/2022-03-11/los-angeles-parks-could-face-budget-shortfalls-by-2050

1. The rezoning plan in Los Angeles aims to increase housing density along commercial corridors and existing residential areas, preserving single-family neighborhoods.
2. If the supply of homes does not meet demand due to policies protecting single-family zones, home prices may rise and the number of renters could increase.
3. Streamlining the permitting process through a single portal by 2050 could expedite new developments and make the process more efficient.
4. ADUs and TIC properties have become more popular and offer affordable housing alternatives in Los Angeles.
5. The city's housing future may be influenced by corporate landlords and investment firms, leading to increased inequality, or by a coalition of policymakers, nonprofits, and aspiring homeowners, who advocate for denser neighborhoods and smaller homes.
6. The Los Angeles Housing Department is using funds from Measure ULA to promote faster housing development and explore novel approaches to homeownership.
7. The city is acknowledging the need for parks and communal spaces due to the increase in neighborhood density, but is also concerned about potential budget shortfalls affecting park funding by 2050.

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