San Diego is much better than L.A. at building apartments. Here's why

"San Diego is building apartments at nearly twice the rate of Los Angeles, with new construction up 10%, while L.A.'s has plummeted 33% over three years. San Diego's streamlined permitting, clear general plan and no traditional rent control make it easier for developers to build, while L.A.'s restrictive regulations discourage projects. As Los Angeles grapples with a housing shortage, it could learn from San Diego, which has proved better at convincing construction companies to build more."

"The city is more welcoming to developers, industry insiders say, with fewer regulations and fees, better planning and less rent control. "It is easier to build in San Diego over Los Angeles because of its legal structure, political culture and defined processes," said Kevin Shannon, co-head of capital markets at real estate brokerage Newmark, which is overseeing the sale of a sprawling development site in San Diego that is zoned to have thousands of apartments."

San Diego increased apartments under construction by 10% over three years while Los Angeles saw a 33% decline, hitting an 11-year low. San Diego's streamlined permitting, clear general plan, fewer fees and absence of traditional rent control lower barriers for developers. Los Angeles' restrictive regulations and rent protections raise costs and discourage new projects. Los Angeles has one of the nation's lowest vacancy rates and among the highest rents, but the supply of new rental units is shrinking despite strong demand. Regulations aimed at protecting renters can increase building and maintenance costs, reducing profitability for new developments.

Read at Los Angeles Times