Study Models New Housing Supply in Los Angeles

Date Published: 
November 9th, 2022

A new study from the Terner Center models the new housing supply in Los Angeles. The study uses the Terner Center’s newly upgraded Housing Policy Dashboard to showcase an innovative method of informing land-use policies at the local level. The study’s modeling can be used by policymakers to conduct data-driven analysis to better understand the impacts of housing policy choices on supply.

The analysis looks at six housing policies and examines how each might impact home-building outcomes in Los Angeles. Policy prescriptions analyzed by the study include: 

  • increasing allowable density on multifamily parcels; 
  • focusing on transit;
  • lowering building fees;
  • streamlining processes;
  • building bigger and taller buildings; and
  • providing less parking.

The authors note that each policy has its own benefits and costs and that each policy lever contributes to increasing the housing supply in different ways.

The findings conclude that the two most effective policies would be increasing density across the board and constructing bigger and taller buildings, which would respectively lead to an estimated 16.2% and 16% more units per year. The dashboard used to conduct the analysis, which will be available for Terner Center staff and local partners, uses Pro Forma Development Modeling to estimate financials and project unit counts.

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