Why Developers See Population Growth as a Big Win

Population growth in Los Angeles is fueling a strong momentum for development in Los Angeles. Some studies have shown that L.A.'s population could double in the next decade, and with housing shortages already causing disruption, developers are appearing in droves to build. Greenland USA CEO Hu Gang says that his development firm—which is famously behind the Metropolis condo development—is heeding the call and developing a strategy around the growing population. To find out more, we sat down with Gang for an exclusive interview.

GlobeSt.com: How is the growing population in Los Angeles affecting development trends in Los Angeles?

Hu Gang: Historically and according to authoritative forecast, LA's population growth has been and will be driven by migration. We think this is a very positive sign for continued strong momentum of development in LA. While the size of the city will remain the same, the size of the population is growing. As a result, the city is going to get denser to accommodate more residents. When we look at other global cities that have experienced similar growth, we know increasingly, more mixed-use projects will be demanded so people can enjoy the convenience and excitement of urban life without the usual urban headaches – like traffic and parking.

GlobeSt.com: What are some of the most popular new residential communities as a result of this population growth?

Gang: People move for jobs. We all follow opportunities. The one neighborhood in LA that has the densest job opportunities is downtown. We know from previous studies that DTLA is home to over 500,000 jobs. Given this context, there is no surprise that we saw neighborhoods in the vicinity of DTLA growing rapidly:  Silver Lake, Echo Park, Culver City, Atwater Village. But now, it is downtown's turn as it becomes an increasingly desirable neighborhood to live in.

GlobeSt.com: Have you changed your development or investment strategy in response to this extreme growth?

Gang: We have been watching the population trends very closely. People follow jobs. We follow people. But, by investing in development projects, we also create many jobs. And this perfectly explains why Greenland has strong faith in the strategy of building transformative projects in gateway cities. By being committed to the long-term health and vibrancy of the communities we serve, we create opportunities for greater communities. Take Metropolis for example, we not only helped meet the local need for more housing, but the project has also provided a significant amount of local employment opportunities. At our peak, we have more than 1,700 union workers clock in daily and, over the course of the development, we will have created more than 15,000 full-time equivalent jobs.

GlobeSt.com: We have a housing crisis in L.A. What do you think are solutions to create enough housing to accommodate the growing population?

Gang: In the very straightforward economic equilibrium between supply and demand, we know that while the demand is growing, we really have to catch up with the supply to reach a desirable equilibrium. Again, from a developer's point of view, and particularly from Greenland's past experience with developments in other cities and countries, we think it is time for LA to embrace more mixed-use land planning and for Angelenos to adapt to a more vertical urban lifestyle.

GlobeSt.com: Are you seeing more demand for residential buyers or renters in the market today?

Gang: It's difficult for us to speak to demand with renters in Los Angeles, since we target residential buyers. But as the first for-sale residential tower to deliver in Downtown Los Angeles in nearly five years, we are seeing strong interest from downtown renters who have witnessed the area's transformation firsthand and are now eager to make it a longer term place of residence.