California real estate is undergoing a shift, and it may not be more obvious anywhere else than Los Angeles. An urgent need for housing inventory and loosening restrictions on ADUs is contributing to a rising trend in multiple properties sharing the same lot – and leaving little to no room for a yard. You’ll find examples across eastside neighborhoods like Echo Park and Highland Park as well as into areas of Mid-City. Often, these are further distinguished by their glaringly modern construction. But is a yard such a disposable luxury?
How an Ordinance Opened the Door for Micro-Lot Housing
Way back in December 2004, the City of Los Angeles passed the Small Lot Subdivision Ordinance, taking effect just a year later. Even back then, land in the Greater Los Angeles area was growing scarce, and home prices were skyrocketing. Under this ordinance, a single parcel of land, commonly zoned for commercial or, more specifically, multi-family use, could be divided into several smaller, individually-owned lots. And each of these lots could boast its own detached home.
In the city’s usual R1 single-family zones, one house requires a lot size of around 5,000 square feet. But the Small Lot Subdivision Ordinance opened the door for similarly sized parcels in RD1.5 zones, allowing lots to support up to five separate domiciles. The ordinance also did away with other restrictions, such as the 20-foot street frontage rule and reductions of setbacks between units. Because of this, you’ll find these homes sitting mere feet from one another. Obviously, such a layout leaves little room for a yard (if any).
An Easier Way to Own
But what do you actually own when you buy a home without a yard? Is it like a condo? The reality is that each buyer holds title to not only the structure, but the land beneath the structure. However, this often literally means the land beneath the structure and nothing more. Usually, buyers of these homes won’t need to worry about homeowners’ association fees or oversight. However, they may be on the hook for maintenance fees of common areas like driveways or sidewalks.
A California Real Estate Trend with Particular Appeal in LA
Adding further to this growing trend in California real estate, certain developments actually specialize in this micro-lot model. For example, Echo Park’s Blackbirds project features tightly clustered units constructed around a series of walkways that lend to a communal structure. Then, there are those that build upon what exists, like the Maltman Bungalows in nearby Silver Lake. The Maltman Bungalows are preserved historic bungalows with newly constructed micro-lot homes surrounding them.
Developers are particularly attracted to this shift in California real estate because it allows them to bypass the typical liability and insurance costs that come with condo construction. For buyers, especially those priced out of the state’s often competitive markets, the micro-lot model allows a rare, affordable foothold into homeownership, freeing them of the rental rut.
The Truth About a Micro-Lot Home’s Affordability
But affordability, even for a micro-lot home, isn’t a guarantee, even if marketing for these homes commonly frames them as a more cost-effective alternative to traditional California real estate deals. Research shows that these homes can still sell well above the median listing price for a Los Angeles single-family home. Much of this simply boils down to the importance of a desirable location. Neighborhoods like Echo Park and Silver Lake are centrally located and in high demand. Often, this means buyers aren’t saving money, but instead simply saving square footage by giving up a yard. It’s not a reasonable trade for everyone, but the model still seems to be growing in popularity.
A Small Lot Home Isn’t for Everyone
Whether a micro-lot situation would work for you comes down to your priorities. If walkability means more to you than curb appeal, then this model may be worth your attention. After all, they offer a way to get into neighborhoods that are often priced well out of the reach of those looking for their starter home. But if the full California dream of an entertainer’s backyard is central to your homeownership aspirations, a small lot home obviously wouldn’t be ideal. Either way, this California real estate trend is taking off, which means we’ll likely see more of these developments sprouting up across our inventory-challenged city.
With a brand that says as much as JohnHart’s, Senior Copywriter Seth Styles never finds himself at a loss for words. Responsible for maintaining the voice of the company, he spends each day drafting marketing materials, blogs, bios, and agent resources that speak from the company’s collective mind and Hart… errr, heart.
Having spent over a decade in creative roles across a variety of industries, Seth brings with him vast experience in SEO practices, digital marketing, and all manner of professional writing with particular strength in blogging, content creation, and brand building. Gratitude, passion, and sincerity remain core tenets of his unwavering work ethic. The landscape of the industry changes daily, paralleling JohnHart’s efforts to {re}define real estate, but Seth works to maintain the company’s consistent message while offering both agents and clients a new echelon of service.
When not preserving the JohnHart essence in stirring copy, Seth puts his efforts into writing and illustrating an ongoing series entitled The Death of Romance. In addition, he adores spending quality time with his girlfriend and Romeo (his long-haired chihuahua mix), watching ‘70s and ‘80s horror movies, and reading (with a particular penchant for Victorian horror novels and authors Yukio Mishima and Bret Easton Ellis). He also occasionally records music as the vocalist and songwriter for his glam rock band, Peppermint Pumpkin.
