"Los Angeles is currently at 17.8 percent of its state-mandated housing goal, with only 81,306 permits issued out of the required 456,000 units by 2029."
"Jordan Lang noted that high development costs, city impact fees, and the Measure ULA tax have significantly suppressed investment returns in Los Angeles."
"Lang emphasized that institutional capital has largely withdrawn from investing in Los Angeles, opting instead for opportunities in neighboring cities."
"To incentivize new developments, there is a strong call for the removal or significant reduction of the ULA tax, which is seen as a barrier to investment."
Los Angeles has issued permits for 81,306 housing units, falling short of the state-mandated goal of over 456,000 units by 2029. Factors contributing to this lag include high development costs, city impact fees, and the Measure ULA tax on real estate transactions. This tax has deterred institutional investment in the city, leading developers to seek opportunities in neighboring areas. Industry leaders advocate for reducing the ULA tax to stimulate new housing development and improve investment returns in Los Angeles.
Read at therealdeal.com
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