Developers to deliver nearly 10K housing units, but a slowdown looms

Deliveries in the second half could top totals for both 2017 and 2018

TRD LOS ANGELES /
Aug.August 14, 2019 10:00 AM
Deliveries are on pace to greatly exceed totals for the last two years
Deliveries are on pace to greatly exceed totals for the last two years

Developers in Los Angeles County are on pace to build more units of housing in the second half of this year than in either of the last two years, but a slowdown could be on the horizon.
A report from Marcus & Millichap found that developers are on pace to deliver 9,400 units in the second half of the year, according to Curbed. Much of that development is concentrated in core L.A. metro area submarkets.

Downtown L.A. is expected to see 1,700 new units in the second half and Hollywood around 1,600. Santa Monica/Marina Del Rey, the San Fernando Valley and Mid-Wilshire will also each see over 1,000 units delivered.

There were around 28,000 units under construction in L.A. County at the end of June, most on pace for 2021 delivery.

That’s good news for L.A., which is desperately short of units affordable for average- and low-earning Angelenos. L.A. County is short around half a million units affordable to people making less than 80 percent of area median income, which around $73,100. More deliveries could help temper rents by increasing supply.

Deliveries may not continue to increase, though. The number of units permitted, an indicator of future deliveries, is on pace to fall this year.
U.S. Census data shows that in the first half of the year, metro area developers received permits to build around 13,000 new units. If that pace continues, about 12 percent fewer units will be permitted this year than last year.

The drop in permits could be a symptom of rising costs of building materials and labor, which have slowed construction over the last few years. [Curbed] — Dennis Lynch


Related Articles

arrow_forward_ios
Rendering of the Vignes Street housing project (Credit: Los Angeles County via Urbanize)

LA County and city will develop supportive housing complex in DTLA

LA County and city will develop supportive housing complex in DTLA
The Los Angeles County Board of Supervisors

LA County mulls plan to buy motels for homeless housing

LA County mulls plan to buy motels for homeless housing
Governor Gavin Newsom (Credit: Anda Chu/MediaNews Group/The Mercury News via Getty Images)

State bans evictions of pandemic-hit renters through January

State bans evictions of pandemic-hit renters through January
Renters and housing advocates attend a protest to cancel rent and avoid evictions in front of the court house in Los Angeles (Credit: VALERIE MACON/AFP via Getty Images)

Statewide eviction moratorium extension would require partial tenant payments

Statewide eviction moratorium extension would require partial tenant payments
California State Senator Scott Wiener and Senate President Pro Tem Toni Atkins

Statewide bill would allow duplex development on single-family parcels

Statewide bill would allow duplex development on single-family parcels
Kathryn Barger, member of the Los Angeles County Board of Supervisors

LA County launches $100M rental assistance program

LA County launches $100M rental assistance program
Chief Justice Tani Cantil Sakauye

Statewide eviction ban, set to end, may get brief extension

Statewide eviction ban, set to end, may get brief extension
L.A. County Sheriff Alex Villanueva (Credit: Al Seib/Los Angeles Times via Getty Images)

LA County begins carrying out pre-coronavirus evictions

LA County begins carrying out pre-coronavirus evictions
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...