LOS ANGELES-Forecast LA, a Los Angeles economic report from Beacon Economics and Thomas and Dorothy Leavey Center for the Study of Los Angeles at Loyola Marymount University, shows a slowly improving Los Angeles economy. In 2014 and 2015, the report predicts steady growth; however, it will be several years before we see major economic growth.

This news may not come as a surprise to many Los Angeles residents. According to Fernando Guerra, LMU political science and Chicano studies professor and director of the Dorothy Leavey Center, "Angelenos have a pretty strong sense of the economic realities facing our region, and they expect things to improve this year. They still remember the negative effects of the recent downturn, of course, and that may be why respondents in our survey say significant economic growth is still several years away."

Employment is expected to grow 2.5% in Los Angeles County and 2.1% in the whole of California in 2014, but will rev up to 3% in 2015 and 2016. However, residents aren't confident of this growth. The report surveyed California residents, and, while 35% expected unemployment to decrease, 35% expected no change at all and 31% except an increase. Still, Christopher Thornberg, Beacon Economics founding partner explains, "The fundamentals have significantly improved, and the probability of another major shock hitting the system and disrupting things this year is not high enough to worry us."

Home prices will slow to mid-double digit growth in 2014 and then down to 5%-6% in 2015. However, in terms of housing, the report expressed a special concern for availability in Los Angeles County. Construction has yet to catch up to population growth, making homeownership out of reach for most residents. "We are short of all housing types," Thornberg tells GlobeSt.com. "The state doesn't build nearly enough housing for population growth; hence you have the worst housing situation in the nation. It is a tremendous problem. It causes social problems and economic problems; and yet the single solution to it is CEQA reform, and it's something the state refuses to do."

Overall, the US economy is expected to grow 3% in 2014, which will be one of the strongest years since the 2008 recession. When compared to the US economy, "Los Angeles is ahead some places and behind others, but it is hard to put a finger on L.A," Thornberg says. "There are 10 million people with an economy that by itself is larger than Belgium. When you see sometimes what I would call average outlooks, it is only because the city has so many different parts, from West L.A. to Lancaster to Compton." Another report issued earlier this year showed employment gains nationally appear to be slowing. Job gains in the December of 2013 fell short of expectations with 74,000 new jobs added, similar to numbers in 2012.