Dear Friends and Family,
As the summer comes to an end, issues with housing remain at the forefront of Los Angeles’s future. The Downtown community looks to streamline the development process in order to build more residential units. Southland renters continue to struggle to make payments due to the pandemic, but the state and city plan to offer a lifeline. Finally, the dream of owning a single family home in California dwindles as prices rise, signifying a shift in the types of properties that residents look to put their money into.
LA is Trying to Plan for a Big Downtown Housing Boom. Can it Meet the Need?
The Department of City Planning’s Downtown LA Community Plan update offers guidelines for what can be built and where in Downtown LA over the next two decades. It is also linked to new zoning rules for the area. The plan projects that Downtown will add 125,000 residents and 55,000 jobs by 2040. That boom in residents would represent 20% of the city’s housing growth happening in a neighborhood that takes up 1% of the city’s land. The plan aims to accommodate what those residents will need, including housing.
Los Angeles Apartment Dwellers Owe $3B in Back Rent
The UCLA/USC study surveyed 1,000 households to examine the accumulated rent debt, and found that nearly half of the households had difficulty making rent payments through the pandemic. Overall, 49% of tenants said that they owe some amount of money to their landlord, and among those that owe back rent, 20% owed less than a month’s rent and 15% owed more than six months in total rent debt.
Application Window for California’s $5.2B Renter Assistance Program Reopens September 1
“Every Angeleno who has had their livelihood upended by this pandemic and is in need of rental assistance should be able to get it, full stop,” said Mayor Eric Garcetti in a prepared statement. “COVID-19 has dealt a devastating blow to our residents, and it’s our responsibility as a government to help them weather this crisis. This partnership with the State builds on our local rental relief efforts to make it clear that every renter who is eligible for rental assistance will be able to access this program.”
Most Californians Can’t Afford a Typical Single-Family Home
For many prospective buyers in California’s largest metropolitan areas, the dream of homeownership has drifted even farther out of reach. Twenty-four percent of Los Angeles Metro Area residents could afford the median-priced single-family home in the second quarter of 2021, compared to 36 percent during the same period last year…The affordability outlook was a bit brighter for the condominium and townhouse segment. Thirty-seven percent of California households could afford to purchase the $585,000 median-priced unit. An annual income of $108,000 was needed to cover the $2,700 monthly mortgage payment.
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As always, please respond with your questions, comments, and thoughts. Until next time, hope you have a great rest of your day!