“Although the city lost an estimated 7,000 residents last year, it continues to attract college-education professionals from New York, Boston, DC and Chicago, per a JLL Research publication,” says Benton. “These residents are moving from transit-oriented markets to a city that essentially requires a car, which on average costs $8,500 a year. This is a major expense these individuals most likely wouldn't incur in the aforementioned markets. Additionally, early research has shown that Gen Z is delaying getting their drivers licenses significantly. Between public transportation and alternative forms of private transportation, this delay may become more of a permanent shift, furthering the value of a modern public transportation system.”

Los Angeles is experiencing a housing shortage that has put pressure on rents and pushed some residents out of the market. While new housing supply is a necessity, the majority of the new construction is luxury housing. “In 2018, just under one third of the housing units in the city, 8,200 out of 27,000, were filed under the TOC program,” says Benton. “Nearly a third of those 8,200 units were set aside for affordable households. Although a terrific start, there are estimates that the city needs over 500,000 additional affordable units. TOC is a terrific program, but a version of SB 50 will need to be passed before we see significant change.”

This trend is only beginning. The pipeline of TOC project will likely continue to grow, particularly in Los Angeles' densest markets. “When looking at Greater Los Angeles, there are roughly 6,700 transit-oriented units under construction right now with another 6,600 planned,” says Benton. “Most of these projects are concentrated closer to DTLA, but you're also seeing developments in places like North Hollywood that are home to tenants who commute to Universal/Studio City, Hollywood and Downtown in under 30 minutes. As the new and extended metro lines come online, you'll continue to see more and more TOC developments.”