Amid a yr dominated by discuss of rebuilding within the wake of the Palisades and Eaton fires, 2025 was yet one more yr of vanishingly few new properties in Los Angeles. At simply 8,714 residential permits issued by the town, housing manufacturing stays close to a 10-year low — or roughly 5 occasions fewer per capita than in cities like Austin, Texas.
These numbers have real-world penalties. In Austin, rents have plummeted 21% within the final three years and at the moment are again to pre-pandemic ranges. In Los Angeles, rents are up 28% from March 2020. For a lot of, that’s a distinction between making ends meet and shedding your house.
This yr presents a possibility to vary course. And but if Mayor Karen Bass and her chief antagonist Rick Caruso signify two poles alongside the continuum of political views in L.A., their shared opposition to SB 79, a state regulation that legalized constructing extra properties close to main transit stops, hints at a deeper dysfunction in our physique politic.
The easy fact is that L.A.’s persistent housing scarcity is just not for lack of technical capability or earnest speeches. It’s resulting from our political leaders’ elementary ambivalence towards the treatment. Despite all of the ache our lack of properties inflicts on atypical Angelenos, our elected officers nonetheless hesitate to declare, unconditionally, that constructing extra housing is nice, truly.
This situation dates again a long time to the late Sixties, when anti-growth attitudes turned intertwined with progressive politics of the day. A Malthusian pressure of environmentalism — “if we don’t construct it, they gained’t have youngsters” — mixed with a worry of dense city environments and their predominantly Black and brown inhabitants following the riots that shook inside cities throughout the nation. A robust nationwide consensus took root that constructing fewer properties was higher.
That consensus reshaped Los Angeles. Underneath leaders like Zev Yaroslavsky who championed poll measures like Proposition U, the town moved aggressively to limit development, lowering its potential housing capability from 10 million folks to only 4 million.
After all, infants had been nonetheless born, jobs had been created, increasingly folks moved to L.A. looking for alternative — and anti-growth logic collapsed underneath the load of actuality. Rents soared. Homelessness exploded. Low earnings households had been displaced to Bakersfield, Victorville, Las Vegas and Phoenix. Metropolis leaders started to acknowledge L.A. wanted extra properties — form of.
L.A. wants extra housing, we now hear our leaders declare — however provided that it doesn’t pressure infrastructure or solid shadows. Provided that it doesn’t substitute parking or pressure anybody to maneuver. Provided that it’s 100% reasonably priced, and provided that it preserves the “character” of present neighborhoods (72% of which are zoned for only one residence per parcel).
It’s no shock, then, that our metropolis’s techniques to approve new properties are concurrently designed to thwart them. In any case, bureaucracies don’t invent priorities; they mirror them. In a metropolis the place Govt Directive 1, the mayor’s signature program to construct reasonably priced housing, has been systematically walked again and dismantled after it proved too profitable at constructing reasonably priced housing, the most secure path for a civil servant reviewing your venture is to only say no at each juncture. Delay is tolerated. Accountability is shirked. Dysfunction abounds.
As famed administration theorist Stafford Beer said, the aim of a system is what it does. Broadly, L.A.’s housing insurance policies endure from three deadly flaws that collectively make up a system you’d be onerous pressed to design higher in case your purpose was to fully stymie all residence constructing:
Synthetic shortage. Zoning continues to constrain development within the high-opportunity areas the place demand to stay is highest, driving up the value of the uncommon parcel of land the place it’s authorized and possible to construct. To go taller and denser, builders should pony up additional by offering “group advantages” that ignore the truth that new properties themselves are of nice profit to the group.
Regulatory uncertainty. Even code-compliant initiatives face a number of layers of unsure approvals and appeals. The typical unit in L.A. takes a mind-boggling 1,784 days to get constructed. The upper the danger of delays and price overruns, the upper the return demanded by buyers. A Rand Corp. evaluation signifies this can be a high cause housing prices 250% extra to construct in California because it does in Texas.
Punitive taxes. Our authorities taxes cigarettes closely to discourage their use. In L.A., we apply related logic to new housing via affect charges, switch taxes and inclusionary mandates that deter desperately wanted funding. As a substitute of collectively funding our infrastructure and reasonably priced housing wants, we pin all of it on new initiatives — after which surprise why they don’t get constructed.
The distinction between Los Angeles and cities like Austin, Denver, Raleigh and Nashville which have made progress on housing isn’t the compassion or creativity of its residents. It’s the readability and braveness of its management.
Moments of real disaster — and we’ve all heard our legislators describe our housing and homelessness state of affairs as such — require leaders prepared to make powerful decisions. Cities that construct housing achieve this as a result of they declare it a high precedence and align their establishments accordingly. Cities that hedge and delay quietly sabotage themselves.
The elemental query going through L.A. in 2026 isn’t whether or not we all know tips on how to construct extra properties. It’s whether or not we’re lastly prepared to say sure to them — and imply it.
Jesse Zwick is the Southern California director of the Housing Motion Coalition.
