Downtown residential construction drops sharply: report

The number of new projects started in the last year fell to 500, from 2K annually

TRD LOS ANGELES /
Jul.July 13, 2018 10:15 AM
Building construction in Downtown LA (Credit: Hunterkerhart.com)

Is Downtown Los Angeles’ residential building boom coming to an end?

Construction starts on new residential units were down to about 500 from June 2017 to June 2018, a significant decline from the more than 2,000 annual projects begun each year since 2013, according to CoStar.

The reasons for the falloff are many.

The city’s Measure JJJ, which voters approved in November 2016, may be among them, according to CoStar. The law requires developers to incorporate affordable units, hire locally and pay prevailing wages at any project that requires a zoning change, according to CoStar. Because zoning changes are often required for large projects, critics of the measure say it will make development unaffordable. And there has been a sharp decline in construction starts since the measure passed.

Developers could also be pulling back amid the storm of development Downtown.

Around 1,600 high-end units came online in the first half of 2017 alone, and another 7,000 units at all levels are expected to come online in the next two years. Still, strong demand drove the vacancy rate Downtown to 10 percent by the end of 2017, or 2.4 percentage points from the beginning of the year.  [CoStar] — Dennis Lynch


Related Articles

arrow_forward_ios
Architect Simon Park and a rendering of the project (Credit: SSPSTUDIO ARCHITECTURE & URBAN DESIGN)

Boyle Heights slated for another mixed-use project

Monica Rodriguez orchestrated the nixing of a residential project set for the Verdugo Hills Golf Course (Credit: Google Maps, Wikipedia)

The threat of fire doomed this Tujunga resi project. Now the developer will sue

A rendering of City Century's Olympia in DTLA (Credit: Visualhouse / City Century)

Chinese developer City Century closes on land for $1B DTLA megaproject

6550 South Normandie Avenue (Credit: Google Maps)

Haroni Investments to turn parking lot into new apartments

Council President Herb Wesson and a rendering of District Square

City will draw up “anti-displacement zone” ordinance

Eric Garcetti’s administration wants to encourage downtown development by axing parking requirements.

To build more housing downtown, LA wants to kill the car

Governor Gavin Newsom and Senator Nancy Skinner (Credit: Getty Images and iStock)

Developers rejoice: Newest state law aims to boost housing production

Assemblyman David Chiu and Gov. Gavin Newsom (Credit: Wikipedia and iStock)

California passes landmark rent control law

arrow_forward_ios
Loading...