Addition near SW 15th and Morgan Rd. Affordable housing with pre fab home construction, Tuesday, Feb. 11, 2025.
Los Angeles, California – Los Angeles fell significantly short of its state-mandated housing goals in 2023, permitting just over 17,200 new housing units—only about 30% of what the city needs to approve each year to stay on track. The figures were released this week in an annual progress report from the city’s Planning Department.
State law requires L.A. to plan for more than 456,000 new homes between 2021 and 2029. Of that total, around 185,000 must be affordable to low- and very low-income residents. But with only about 3,000 of last year’s permitted homes qualifying as affordable, the city is missing the mark on both market-rate and income-restricted development.
“Housing advocates citywide have seen this coming for the last several years,” said Azeen Khanmalek, executive director of Abundant Housing L.A. “We have not seen fundamental change in how we regulate housing and land use in Los Angeles.”
While 2023’s 17,217 permitted homes mark a decline from the 18,618 approved in 2022—and an even steeper drop from the 23,422 permitted in 2022—city officials point to broader economic headwinds. These include high interest rates and rising construction costs, which make housing projects more expensive.
Clara Karger, spokesperson for Mayor Karen Bass, said the city is doing what it can to accelerate development. She cited Executive Directive 1, which has slashed approval wait times for affordable housing by 75% and fast-tracked over 30,000 units.
Still, local policies may be hindering progress. Critics have pointed to Measure ULA, a tax on real estate sales over $5 million, as a deterrent to new development. While the tax funds tenant support and affordable housing, advocates argue it has discouraged the construction of new multi-family housing.
“Why are we putting new taxes on multi-family apartments where people like me could potentially afford to live?” said Zennon Ulyate-Crow, a YIMBY Los Angeles volunteer who recently moved back in with his parents due to soaring housing costs.
Some see hope in proposed reforms. Khanmalek praised efforts to streamline permitting through a self-certification process for small projects, and zoning reforms to allow space-saving single-stairway apartment buildings.
Pending state legislation could also open more areas to dense development. Senate Bill 79 would allow apartment buildings near transit, potentially unlocking parts of the city where 72% of residential land is currently zoned for single-family homes.
“There are these little things that are really heartening,” said Khanmalek.
