Over the past 50 years, homeownership rates in Los Angeles County have fluctuated due to economic conditions, housing policies, and demographic shifts. Between 1954 and 1989, California saw an average of more than 200,000 new homes built annually, with multifamily housing making up a significant portion of that development. This era of robust housing growth contributed to higher homeownership rates across the state, including in Los Angeles County.
In recent decades, however, zoning laws, stringent regulations, high permitting costs, and the long approval process for housing projects have made development increasingly difficult. Housing construction has failed to keep pace with population growth, driving up both homeownership costs and rental prices.
Back in the 1980s, Los Angeles had a homeownership rate of around 60%. Today, while California’s overall homeownership rate sits at 55.9%, Los Angeles has fallen dramatically to just 35%, with renters making up the remaining 65%. This shift has significantly influenced government policies.
Numerous pro-tenant policies have made owning and maintaining residential rental properties more challenging. Small mom-and-pop landlords—many of whom have relied on rental income for retirement—are being squeezed out by deep-pocketed Wall Street investors who can better navigate the rising costs and legal complexities. Unfortunately, this dynamic discourages the addition of new rental units, further exacerbating the housing shortage. It also redirects monthly income and long-term equity accumulation away from local homeowners and into the hands of large corporations, diminishing the economic benefits for the community.
Economists from across the political spectrum agree that government-imposed cost controls often lead to unintended consequences. Overregulating any industry inevitably results in less of it—housing is no exception. The powers that be, need to govern under basic economic logic, rather than who’s screaming the loudest at a City Council meeting. A balanced approach would make the entire scenario better.
If you are in the Los Angeles area, and have any questions or real estate sales or financing needs, feel free to contact me
Ron Henderson GRI, SRES, SFR, RECS, CIAS, CREN, GREEN
President/Broker
Multi Real Estate Services, Inc.
Gov’t Affairs Chair – Southland Regional Association of Realtors (2025)
Gov’t Affairs Chair – California Association of Mortgage Professionals (2017-2018)
Chairman – OutWest Marketing Meeting (Real Estate Education)
BRE #00905793 NMLS #310358
www.mres.com
ronh@mres.com
Specialist in the Art of Real Estate Sales and Finance
Real Estate market, mortgage rates, Los Angeles, San Fernando Valley, Conejo Valley, Simi Valley, Woodland Hills, West Hills, Calabasas, Chatsworth
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