Apartment development has been concentrated in three submarkets: Downtown Los Angeles, Koreatown and Hollywood. The concentration of construction in those markets isn't necessarily because there is higher demand or more available land, but rather because those are developer-friendly areas, according to Steve Fifield, co-founder and principal at Century West Partners. He says the community pushback in other L.A. submarkets, like West Hollywood and Santa Monica, has pushed developers into these three neighborhoods.

“Why are Downtown, Koreatown and Hollywood getting so much housing? Because we already have so much NIMBYism in the market,” Fifield tells GlobeSt.com. “The term NIMBY is a national term now, but it started in Westwood. This is the home of NIMBY.”

New legislation, namely Measure JJJ, has exacerbated the problems, making it difficult for developers to build up-zoning projects anywhere in the city. The key is that the project needs an up-zone or exemption to the general plan to trigger Measure JJJ. Fifield was at a recent event where Mayor Eric Garcetti was asked when the general plan will be updated, essentially making Measure JJJ void, and Garcetti responded, “It isn't going to happen over night.” Fifield would like to be included in the process of developing a new plan and to solving affordable and middle-market housing, but says that developers are usually left out of the process. “All of us participate when we are allowed to, but we are just a piece of it,” says Fifield. “With all of the political forces that play out in a general plan, nothing gets done very quickly. We are going to have to make due.”

Despite the community acrimony, Fifield says they have been able to get projects through in the past. “We have a great relationship with the city and we get things done, but these kind of general plan amendments and Measure JJJ have been done in a vacuum with very little input from the people that are actually impacted by it,” he explains.

The legislation won't stop Century West from developing in Los Angeles, but they will need to look for locations that are open to development. “Los Angeles is such an attractive market. The lifestyle, the demographics, the demand and the job growth are all positive,” says Fifield. “That means that we have to find other areas where we can build, and you just can't build as much.”

Instant Insights /

Why L.A. Development Is Concentrated in Three Markets

Related Stories

Recommended For You