Los Angeles is the center of the global entertainment industry and a destination for so many hopefuls to live out their American dream. Los Angeles County boasts a population of over 10 million people, while the city of Los Angeles includes almost 4 million people. It is the largest city in California, and the second-largest city in the United States. With so many people living and working in the city, many ask, does LA have a housing crisis?
Does LA Have a Housing Crisis?
Los Angeles is California’s largest city, but home to the least affordable homes and apartments. The housing crisis in Los Angeles has made headlines across the nation, but this is not a new problem. The issue has been going on for decades despite the city being zoned to house up to 10 million people. However, by 2010, the zoning had shrunk to 4.3 million people.
This has resulted in Los Angeles having the fewest homes per capita compared to every other metropolitan area in the United States. It also has the second-lowest rental vacancy rate of any major city in the country. This is because more than 75% of the city’s residential land is zoned for single-family homes.
Single Family Homes vs Apartments
Historically, Los Angeles was a metropolis that pioneered the idea of “urban sprawl.” This idea involves the rapid expansion of low-density housing and an increased reliance on private cars for transportation. This was intentional as Los Angeles wanted to differentiate itself from cities like New York and “Manhattanization.” Manhattanization refers to the high-rise buildings in densely populated areas like New York City.
Densely populated urban areas often end up associated with urban decline, including increased homelessness, crime, and unemployment. LA’s zoning policy focused on single-family homes versus multi-family homes (also referred to as “apartments”). Despite the intention of Los Angeles promoting “slow growth” policies to avoid these issues, the city unfortunately suffered the consequences of urban decline anyways. In fact, despite New York City stands as nearly twice the size of Los Angeles. But Los Angeles still has similar numbers in terms of homelessness, crime, and unemployment.
Foreclosure in Los Angeles
Due to the housing crisis in Los Angeles, many people are losing their homes due to the rising costs associated with living in the city. The global pandemic did accelerate the impact of the housing crisis. Still, it has proven decades in the making and would have occurred no matter what. In 2021, we saw thousands of homes listed on the Foreclosure Registry published and publicly available from the Los Angeles Housing Department. Solving the housing crisis in Los Angeles will require a lot of time, money, and solid housing policies. Specifically, ones that focus on creating a reasonable housing market in the city.
Foreclosure can have a negative impact on your life in a variety of ways. Not only are you losing your home. But foreclosure can also impact your credit and ability to qualify for new loans for years to come. The impact does not just include future home loans, but other lines of credit as well. Foreclosure prevention in Los Angeles is important when it comes to your long-term financial health.
The experts at Apex Resolution prove skilled in foreclosure prevention. In fact, they are the top Los Angeles lender negotiation experts as they specialize in short sales. A short sale is an effective solution to help you avoid foreclosure. It has fewer financial consequences as compared to foreclosure for both the lender and the homeowners. The team at Apex Resolution have helped thousands of property owners navigate the short sale process. Contact their office today to learn more about your options!