L.A. Adjusting to High-Rise-Style Living

Los Angeles has become known for its sprawl, space and single-family homes, but as the city adopts density, residents are adjusting to the idea of high-rise-style living. There is strong demand for high-rise apartment units, particularly in the city’s densest areas, like Downtown Los Angeles, and it could be a catalyst for more condo construction.

“In some ways, Los Angeles is just getting used to high-rise living. The success of the rental market is an indicator of that,” Nick Griffin, executive director at the DCBID, tells GlobeSt.com. “If you had told someone even five years ago that there would be really robust demand for high-rise living in Downtown Los Angeles, there would have been a certain amount of skepticism. However, that has proven itself to be a such an appealing product. I think that it would be natural that the next phase would be high-rise condos. If a market is untested on the rental side, it is much more risky to build condos.”

While Los Angeles residents have typically wanted spacious single-family homes within the city, high-rise living has its own appeal. While smaller, it offers direct access to amenities and often walkability. “What makes high-rise living viable and desirable is that you have enough amenities around it to support it,” says Griffin. “People want to live in a high-rise because they know that when they go down to the ground floor, they will have everything they want. It isn’t a drive away. That is becoming a standard.”

Downtown is the perfect market to serve as a conduit for high-rise living. The density is already built into the market—and the healthy absorption, particularly for the amount of construction, illustrates the demand. “The apartment buildings in Downtown Los Angeles are fantastic with great amenities, but they are also selling that they are within blocks in any direction to more restaurants and bars and fun things to do than you could ever want,” adds Griffin.

Markets like New York City and Chicago have already adapted to the idea of high-rise living, and both have a strong stock of condo units. Los Angeles is heading in the same direction. “In New York, you wouldn’t even ask this question. There is all high-rise condos,” says Griffin. “Now that the Los Angeles market has gotten comfortable high-rise living in general, it is less of a leap to build high-rise condos, particularly because that is where your buyer is going to come from.”