Real Estate Development
Here are some notes about real estate development from an event consisting of developers and tenant advocates:
Current leaders in Southern California are resisting the “Not In My Back Yard” movement that has been spreading in Los Angeles. It is commonly perceived that the working class families who live in the greater Los Angeles area are currently in a critical environment since prices of housing are so high. The wage gap contrasts severely with prices in the housing market. Raising the minimum wage will help the issue among the working class, which is something the Measure JJJ: Affordable Housing and Labor Standards Initiative addresses.
Initiatives like the Neighborhood Integrity Proposal and Measure JJJ are starting to slow down developments and supply in the market. In the future, there is definitely going to be less real estate development in Los Angeles which will in turn cut down the supply of residential product on the market. Because of the contrast of ideas, there needs to be a balance established among the forces in the Los Angeles real estate market.
Measure JJJ and Zoning
Measure JJJ requires that every real estate project over 10 units will have an affordable component if the developer is asking for a density bonus. The main problem that is causing issues in the Los Angeles real estate market is that zoning and development restrictions need to be updated, not slowed down. Community plans also need to be updated, which will halt requests to separate from these plans.
The Future and Conclusions
The Neighborhood Integrity initiative is not the best proposal that the city of Los Angeles has provided while trying to fix the real estate market. Delaying development in the real estate market may cause some current issues to slow down, but it won’t be the help that the Los Angeles real estate market needs in the long run.