There’s no way around it: Los Angeles has a housing supply shortage. You may not hear us talk about it much here at JohnHart. But that’s only because we invest in agents who know how to use conditions like this to your advantage. That doesn’t mean we’re working in an ideal market. Will supply ever catch up to demand where Southern California’s housing is concerned? There’s a way forward, but first we need to understand our biggest challenges to the housing supply. And today we’re narrowing it down to the three chief offenders. Here’s what they are… and what we can do about them.
Housing Supply Obstacle 1: Exclusionary Zoning
When it comes to stunting the region’s housing supply, perhaps there is no greater enemy than exclusionary zoning practices. The Greater Los Angeles area is particularly susceptible to exclusionary zoning in that many areas of the city and county hold an almost religious protectiveness of single-family zoning. Per a report conducted by UC Berkeley, nearly 78 percent of the land in the Greater Los Angeles area is permitted for single-family homes only. Meanwhile, just 11.8 percent permits multi-family housing development.
It’s a marked imbalance that handicaps housing development overall, a dangerous practice in a state facing a clear housing supply crisis. And the result? In most cases, price increases pivoting off of market scarcity. Looking back at an LAist article from 2022, you’ll find some sobering reinforcement for this theory. They found that single-family zoning in neighborhoods with 90 percent exclusivity could feasibly drive a home’s listing price up to double its median value.
The UC Berkeley report found an even more disturbing trend. Findings indicate that exclusionary zoning allows certain areas to “hoard” municipal resources, whether that be to reinforce schools, infrastructure, or even natural recreation areas. With research showing a distinct correlation between children growing up in densely zoned urban areas and successfully climbing economic ladders, irresponsible zoning and municipal hoarding are likely contributing significantly to segregation at both racial and economic levels.
Housing Supply Obstacle 2: Local Building Restrictions
But even if you are building within an area zoned for multi-family construction, you’ll need to adhere to our next enemy of housing supply: LA’s strict building restrictions. Buried within the Municipal Code, you’ll find sensible regulations drafted with public safety in mind. But some of these restrictions are outdated. In short, the Municipal Code hasn’t kept pace with advancements in technology and design.
It’s why the city is just now reconsidering single-staircase buildings, calling into scrutiny a law that demands multi-family buildings of three stories or more must include multiple stairways. When outdated restrictions, including height caps, collide with aggressive zoning for single-family homes, we reach a nearly insurmountable barrier that turns developers away. And housing supply continues to starve.
Housing Supply Obstacle 3: NIMBYism
We’ve discussed the final enemy of housing supply on this blog before, but some things bear repeating. We’re talking about NIMBYism, a territorial movement that derives its colloquial name from an acronym standing for “Not In My BackYard”. For a perfect illustration of NIMBYism in action, one need only look to a 2024 story plucked from the pages of the San Gabriel Valley Tribune.
A group of concerned citizens managed to bury plans for a 360-home housing project that would have been developed along the Royal Vista Golf Course. Arguments ranged from an undue burden on schools and increased traffic to strained water supply and cluttering of space. While these are valid concerns in the right context, Los Angeles is a growing metropolitan area… or it would be if housing supply could even come close to matching demand. The luxuries of NIMBYism earn more scrutiny in the face of a housing crisis.
We’ve singled out this community for successfully killing much-needed housing, but the truth is that it’s happening all over the city. NIMBYism is a major reason why so much of the city remains locked in single-family home zoning. At some point, cities need to be allowed to grow into the cities that everybody needs… not just the lucky few.
What Can You Do to Promote a Healthier Housing Market?
Exclusionary zoning, building restrictions, and NIMBYism: on their own they’re formidable forces. Together? They’re almost insurmountable. Almost. So, what can we do to overcome this vice grip the system has on our housing supply? We can start by voting for those who promote smart rezoning assessments.
This means staying active in every election, not just the “big” ones. Because the truth is that every election is big in its own way. And part of the reason we got into this mess is due to ignoring local elections. Politics can’t be a spectator sport. If you want laws and regulations to change, then vote for the people who are promoting a change.
But if you can’t wait until the next election, get involved in your community by joining reputable organizations and grassroots efforts that promote YIMBY practices that make the most sense to you. If you haven’t already guessed, YIMBY is an acronym standing for “Yes In My BackYard”. And many of these groups are pushing for legal changes that would allow for Southern California to seriously address its housing supply shortage. Do your research to find the organization that best mirrors your beliefs. You can make a change, but it has to start with the people immediately around you!
Contributor, designer & admin for JohnHart Gazette.
