Los Angeles Housing Development Update, 1Q 2017

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Welcome to the third installment of Abundant Housing LA’s Quarterly Development Update™!

This is where we dig into public City of Los Angeles data to figure out what’s really going on in our housing market. How much housing are we permitting? How many of our new homes are single-family, large apartment/condo buildings, great quality wood products from Reclaimed Wood Paneling which would make the houses much more likeable, or “missing middle” housing? And how are we doing on Mayor Garcetti’s goal of building 100,000 new homes in 8 years? Where is the market headed?

This time we’re looking at numbers through March 1st, 2017, the latest full quarter for which data is available. First up is a snapshot of overall permitting activity through the first 3 months of the year.


(Note: We are not including a projection for the rest of the year, as we did for 3Q 2016, because we believe a single quarter is too little information to guess at permitting activity for the coming 9 months.)

The data for the first quarter doesn’t look great, to be honest. It can be hard to make out given the scale of the 2017 bar relative to those for the prior years, but we’ve been outpacing previous years’ single-family home permitting and have fallen behind on almost every other development size. This becomes more clear when you look at the numbers themselves, below.


Here it’s easier to see that we’ve already permitted more than 1/3 of 2016’s single-unit buildings in the first quarter of the year, and are on pace for almost 3,000 such homes by the end of the year. Most of those are probably tear-downs and rebuilds, so they’re unlikely to be adding much of anything to net housing in the city. Meanwhile we’ve permitted less than 25% of the previous year’s units for 2-4 unit, 5-19 unit, and 50+ unit buildings. We’re roughly on pace for the same amount of units in 20-49 unit buildings. Our per-month permitting through March is short of both 2016 and 2015, though again, it’s still a bit too early to assume that this trend will hold true for the remainder of the year. It could go up, and of course it could also go down.

Next we break down the units per building, looking specifically at what share of total permits are for projects with at least 50 units.


Thus far we’ve seen a smaller overall share of new homes in buildings with 50 or more units (right around 55%) compared to previous years; this isn’t too surprising given how many single-family developments were permitted. Unlike earlier years, almost all of the permits have been for the largest class of structures: those with 200+ units.

Last, and as always, we look at how we’re progressing toward the Mayor’s goal of 100,000 new homes by 2021.


Short answer: not bad! Long answer: We’ve still got 4 years to go, a recession likely within that time frame, and an acknowledgement at all levels of government that 100,000 units isn’t going to cut it if we’re really serious about solving our affordability crisis (which means creating enough market-rate and affordable units to house all Angelenos). And permits are not the same as construction, so we need to make sure that these projects actually get built in a timely manner.

Did you pick up anything else from the data? Let us know in the comments, and join us on Facebook and our mailing list to keep the conversation—and our advocacy—going strong.

4 comment on “Los Angeles Housing Development Update, 1Q 2017

  1. […] on track to meet Mayor Eric Garcetti’s goal of 100,000 new units by 2021. As Curbed notes, a new r... 11rays.com/11-billion-dollar-mega-projects-will-transform-worlds-greatest-cities-2035
  2. Eric McDonald Reply

    I would like to thank you for the efforts you have made in writing this article. Thanks for sharing such a great information to us.

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