April 2023 City Scoop: Los Angeles
City Grill
Brandon Tripp
Southern California District Procurement Executive and Vice President
Milender White
While California officials are championing ambitious housing production goals to meet chronic undersupply, market pressures are creating significant obstacles for progress, says Tripp. Production fell short last year by roughly 30% of the state’s annual goal to create 180,000 units, with current economic headwinds only adding to the challenges, he says.
“Soaring construction costs and interest rates and a challenging entitlement process are continuing to be major issues,” Tripp says. “We are seeing several of our market-rate developer clients choose to forego project starts until something gives and the environment becomes more attractive to builders.”
As a result, more developers are pursuing the Builder’s Remedy provision via the California Housing Accountability Act to push their projects through planning departments.
There are also more calls for reform to the California Environmental Quality Act, which has resulted in higher costs for housing and longer entitlement durations.
