LOS ANGELES-UCLA study the 2013 Livable Communities Report: A Call to Action has identified transit corridors as the ideal location to develop new workforce housing that could help shrink Los Angeles' housing affordability issues. In a “call to action,” the report uses six demographic and market issue categories, which are population, housing density, income, employment, transit ridership and land values, to rank the development potential of 104 station areas. The results showed these areas offer the best affordable housing development opportunities.
Ascending housing prices this year have contributed to an increased affordability gap for middle-class workers. The report states that 60% of renters and 50% of homeowners have housing costs 30% higher than their income. This group also represents those whose income is too high to qualify for government assistance.
"Identifying the hottest areas of the region for workforce housing is important, but it's only part of the equation," says Paul Habibi, UCLA Anderson School of Management professor and the study's principal author. "Meaningful public-sector incentives are still required to attract investment and make these new livable communities financially feasible, especially given the demise of redevelopment agencies that traditionally led these efforts. Policymakers have the tools to make these projects attractive to potential investors and builders, and it's time to use them."
The report makes several policy recommendations to encourage this solution, including establishing housing trust funds in Los Angeles County and increasing density bonuses for mixed-income development.
"Quality housing that families can afford is critical to LA's ability to compete against other cities and attract and retain job-creating businesses," says Mary Leslie, president of the Los Angeles Business Council, the group that funded the report. "Perhaps the most important step we can take is to secure the housing trust fund revenue streams in L.A. County to ensure we have adequate funding to develop livable communities." LABC sees the report as a “roadmap” to developing affordable housing for middle-class families who can relay on mass transit, and they embrace the solution.
Mass transit is also one of the key characteristics of developments targeting the millennial generation. According to experts at USC Casden Multifamily Forecast last month, millennials look for housing developments near public transportation and in walkable communities.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.