The report drew immediate responses from some affordable-housing groups, who say the government must do more to encourage the construction of low-cost housing and launch more programs aimed at turning renters into owners. But the study also suggests that LA could remain among the nation's most promising multifamily markets for investors for at least the next several years.

The report is based on figures collected from the 2000 US Census. It says that the nationwide homeownership rate climbed to a record 66% last year, meaning that only 34% of Americans rent instead of own.

But those figures were almost completely reversed in LA: Here, just 38.6% own while 61.4% rent. Only New York City has a higher percentage of renters, 69.8%.