Construction has had multiple ups and downs in recent years as a result of the pandemic and surrounding economic factors. Throughout it all, multi-family construction has actually done pretty well. In fact, it’s currently at its highest rate in the last fifty years in terms of total number of new multi-family constructions. Unfortunately, that doesn’t mean it’s high — construction has been in a slump for the past thirty years, and meanwhile the population has been increasing.
Los Angeles has it the worst of any US metro, underproducing by about 400,000 homes. This is despite the fact that it’s also one of the top metros for multi-family construction. In large part, this can be attributed to the fact that it is the second most populated metro in the US. But the real issue is restrictive zoning laws, which are only recently being changed in California. The vast majority of homes in the Los Angeles metro are single-family residences because that’s what the lot’s zoning allows.
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