Missing Housing: How Los Angeles Is Wasting Multifamily Housing Units in the Midst of a Housing Crisis

Abstract

Like other US cities, Los Angeles faces a housing crisis, with sale and rental prices exceeding the national average. We used data on property characteristics and zoning status to examine properties zoned for multifamily use in the city of Los Angeles, particularly those not building to their legally permitted maximum number of units, to determine whether those properties were capable of reaching this level of development. Our study reveals a 400,000-unit unbuilt allowable housing gap, predominantly in properties over 50 years old. We analyzed the properties as-built and developed scenarios under which they were built to their legal maximums, and found evidence that regulatory limits, mainly minimum parking requirements (MPRs), inhibit full development of these properties. However, there are also a large number of additional allowable units in buildings that do not face regulatory constraints. Our analysis of the upzoning Transit-Oriented Communities policy reveals that while zoning changes allow for more multifamily developments, many eligible properties still face regulatory hurdles. Our research shows that a core strategy for improving the Los Angeles area housing shortages should be policies to facilitate older properties redeveloping or adding units.