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DTLA Responds to Housing Challenge with New Product
While Southern California has continued to struggle to build enough homes to keep up with demand, causing shortages and rising rents across the region, DTLA has been developing apartments and condos at a record pace and keeping price increases modest year over year. According to the Downtown Center Business Improvement District’s (DCBID) Q3 2019 Downtown L.A. Market Report, construction is underway in every market sector and in every corner of the burgeoning urban center.
“While much of Los Angeles fails to deliver much needed market-rate multifamily rental units to its residents, DTLA is meeting the increasing demand for its dynamic urban lifestyle with a sustained supply of new construction that has become the economic engine of the City’s continued growth,” said DCBID’s Nick Griffin. In fact, more than half of all housing deliveries in the City of L.A. since 2018 have been in Downtown. “As a result of this sustained development, effective lease rates in DTLA have risen less than 1%, whereas the city as a whole has experienced an 8.4% increase,” said Griffin.
In addition to the more than 5,700 residential units currently under construction, there is 2.6 million square feet of office space, 1.3 million square feet of retail, and 2,022 hotel rooms in active development, with much more in the planning stages.
*Pictured SCG America’s Perla condominium tower in DTLA. Photo Credit: Hunter Kerhart Architectural Photography
For comments, questions or concerns, please contact Dennis Kaiser
- ◦Development
