LA Real Estate Industry Applauds Hochman Win in DA Race

The real estate industry is breathing a sigh of relief because independent Nathan Hochman has secured victory in Los Angeles County’s closely watched district attorney race.

The former federal prosecutor won over voters with his “blueprint for justice” aimed at restoring public safety, while blaming incumbent George Gascón for a stance too soft on crime.

“This is the most important election result by far,” said Michael Nourmand, president of Beverly Hills luxury residential brokerage Nourmand & Associates, referring to the race.

Hochman had roughly 1.4 million votes as of Wednesday afternoon, while Gascón had about 891,000.

Dan Yukelson, CEO at the Apartment Association of Greater Los Angeles, said the group is “very pleased” with the results.

“This is definitely a step in the right direction,” Yukelson said. “We’ve really seen a major increase in property crime and theft over the last four years.”

Conditions on streets with increased homeless encampments and unsightly campers parked near apartment buildings have made it hard for some landlords to rent vacant units over the past few years, Yukelson said in relation to crime’s impact on multifamily owners. In some cases, landlords have felt the need to disclose the higher area crime rates to prospective tenants in a bid to avoid liability.

Tenants have also faced stressors from individuals with drug addiction and other crimes, causing landlords to feel the pressure from both ends, Yukelson added.

“We get people trespassing at our properties and those [cases] are barely prosecuted. The LAPD has been reluctant to show up or deal with it,” Yukelson said of what many apartment owners have faced over the past four years.

Other industry supporters of Hochman include developer Rick Caruso, former Los Angeles Police Commissioner turned developer Steve Soboroff, Madison Partners President Bob Safai and Palos Verdes Investments President Jerry Marcil.

Luxe impacts

It’s not just commercial property owners that have pointed to crime as impacting their business.

The Greater Los Angeles Realtors Association and Southland Regional Association of Realtors, like the AAGLA, endorsed Hochman in the lead-up to election night.

“Public safety and smash and grabs were two important issues we heard about through our members and the public, which is why we decided to take the step to get involved with an endorsement,” Greater Los Angeles Realtors President Anne Russell said in a statement to The Real Deal, congratulating Hochman on his win.

Last month Hochman stopped for photos and handshakes at luxe agencies The Oppenheim Group and The Beverly Hills Estates.

Luxury residential agents have reported anecdotally this year that residents and prospective homebuyers are leaving the Los Angeles market on account of crime, heading to upscale alternatives such as Newport Beach in Orange County.

Nourmand pointed out the issues when crime has no consequences.

“You go to a CVS and shaving cream and razors are locked,” Nourmand lamented of what’s become a common sight in many stores as retailers have sought to tamp down on theft.

He also echoed what many agents have said of business shifting to other markets on account of crime.

“If you look at some of the agents in L.A., primarily the ones on reality TV as a good example, they were doing fewer big deals here but making it up over in Orange County,” he said. “So there were definitely some people that didn’t feel safe here.”

The flight to alternative markets also included areas with gated communities or that are more remote, such as the San Fernando Valley’s Calabasas, Hidden Hills, Encino and Sherman Oaks, Nourmand added.

Shifting views

The district attorney race outcome offers a critique on the policies that landed incumbent Gascón the D.A. seat in 2020. In the wake of George Floyd’s death, Gascón campaigned on a progressive platform aimed at criminal justice reform. Voters, however, appear to have grown weary of the experiment amid increased public perception of crime in the county.

Proponents of Gascón have long pointed to crime statistics, which appear to be on the decline this year. The L.A. County Sheriff’s Department reported violent crimes up less than 1 percent in the first nine months of 2024 compared to the year-ago period. Property crimes for the same nine-month period rose 2.3 percent. The department’s figures aren’t comprehensive for the county, given its jurisdiction is unincorporated areas and cities with contracts for its services.

Voter views on crime appear to to stretch beyond Los Angeles city limits, with Alameda County voters in the Bay Area seemingly on the same page as their SoCal counterparts. Pamela Price, who began her term as district attorney in 2023, is likely to be recalled based on returns counted as of Wednesday morning. A new district attorney would be appointed by the Board of Supervisors.

“The voters of Los Angeles County have spoken and have said enough is enough of D.A. Gascón’s pro-criminal extreme policies; they look forward to a safer future,” Hochman said in a statement Wednesday.

Hochman’s win was hardly a surprise with polls showing his consistent lead over Gascón. The UC Berkeley Institute of Governmental Studies and Los Angeles Times’ poll, released two days before the election, had Hochman leading by 25 points.

The former Republican turned independent campaigned away from party lines and political ideology, arguing district attorneys should make decisions “solely on the facts and the law.”