4 ms·

Exactly. Development absolutely happens in these places, but big capital is only interested in fat margins, thus virtually all of that development has been luxu

Exactly. Development absolutely happens in these places, but big capital is only interested in fat margins, thus virtually all of that development has been luxury condos (and in LA suburbs, McMansions).

jamestimmins 4y ago
Luxury condo development occurs because LA, and California as a whole, have onerous costs that make any other type of housing not pencil. The fixed costs for development are so enormous that it's often impossible to make any profit while building affordable housing.
- miguelazo 4y ago
  Really? LA voters have passed literally billions of dollars in funding for affordable housing. California has passed bill after bill to overcome regulatory hurdles for approval of housing that includes even a tiny amount of affordable housing. Private developers simply aren't interested.
  - jamestimmins 4y ago
    I think that's a common misconception. If you dig into those numbers you'll probably find a regulatory burden that is not actually gone, massive local pushback on development, or a cost structure that still doesn't work. California refuses to learn the lesson that throwing money at a problem doesn't just mean it's fixed (see: the high speed rail).
    - miguelazo 4y ago
      Obviously money alone won't solve the problem. But when 95%+ of the proposals are NOT affordable housing, and those developers are actively bribing city officials, it's no surprise that most of what gets built are luxury condos, mostly downtown, the vast majority of which are uninhabited, serving as bank accounts for foreign "investors." https://www.latimes.com/california/story/2023-01-19/jose-huizar-agrees-to-plead-guilty https://www.latimes.com/california/story/2023-01-19/jose-hui...
      - jamestimmins 4y ago
        Do you have data to back up your claim that the vast majority of new LA condo development is uninhabited and going to foreign investors?
        miguelazo 4y ago
        Yeah, try taking a drive downtown after dark in any major city. See how many of the new units have lights on. Do that night after night, random times. Most are dark. Local/state governments don't actually collect data on this because they're in the pockets of real estate. Vancouver BC had the exact same problem, so they passed a massive vacancy tax, something California needs to implement ASAP.

jamestimmins 4y ago

Luxury condo development occurs because LA, and California as a whole, have onerous costs that make any other type of housing not pencil. The fixed costs for development are so enormous that it's often impossible to make any profit while building affordable housing.

miguelazo 4y ago
Really? LA voters have passed literally billions of dollars in funding for affordable housing. California has passed bill after bill to overcome regulatory hurdles for approval of housing that includes even a tiny amount of affordable housing. Private developers simply aren't interested.
- jamestimmins 4y ago
  I think that's a common misconception. If you dig into those numbers you'll probably find a regulatory burden that is not actually gone, massive local pushback on development, or a cost structure that still doesn't work. California refuses to learn the lesson that throwing money at a problem doesn't just mean it's fixed (see: the high speed rail).
  - miguelazo 4y ago
    Obviously money alone won't solve the problem. But when 95%+ of the proposals are NOT affordable housing, and those developers are actively bribing city officials, it's no surprise that most of what gets built are luxury condos, mostly downtown, the vast majority of which are uninhabited, serving as bank accounts for foreign "investors." https://www.latimes.com/california/story/2023-01-19/jose-huizar-agrees-to-plead-guilty https://www.latimes.com/california/story/2023-01-19/jose-hui...
    - jamestimmins 4y ago
      Do you have data to back up your claim that the vast majority of new LA condo development is uninhabited and going to foreign investors?
      - miguelazo 4y ago
        Yeah, try taking a drive downtown after dark in any major city. See how many of the new units have lights on. Do that night after night, random times. Most are dark. Local/state governments don't actually collect data on this because they're in the pockets of real estate. Vancouver BC had the exact same problem, so they passed a massive vacancy tax, something California needs to implement ASAP.