April 25, 2024 Breaking News, Latest News, and Videos

Six Big Lies Keeping the Real Estate Bubble Inflated (Part 1)

Every so often SMart invites a guest columnist to write an article about local planning issues. This week and next we have invited Dick Platkin, a former planner for the City of Los Angeles, who is writing about the lies that the building and financial industries perpetuate in their quest for profits using the wedge of new State of California laws gutting local development controls. Since this year the State has been feverishly passing laws unleashing over development, (the City of Santa Monica is now supposed to build 5000 new units in the next 10 years) we felt this article was relevant to expose the lies used to sell this overdevelopment. While Dick’s article was written about Los Angeles identical issues apply in Santa Monica. Just substitute Santa Monica every time he mentions Los Angeles. This article first appeared in City Watch LA a few weeks ago. 

Planning Los Angeles.  If you follow the news regarding housing-related legislation bubbling up in Sacramento and at LA’s City Hall, you have been subjected to a series of big lies.  They all claim that quickly-permitted, larger, taller, denser apartment buildings will finally solve the housing crises ravaging Los Angeles and the rest of California.  For good measure, the lies sometimes fold in other alleged benefits, such as less traffic congestion, reduced Green House Gas emissions, and increased transit ridership.

Even though many CityWatchLA writers have exposed these lies, like zombies, they repeatedly rise from the grave, intent on keeping the current real estate bubble alive.  For this reason they need continuous debunking, as well as identifying who benefits from them. 

Big Lie # 1.  California needs 3.2 million more homes, and up-zoning the entire state will end the housing shortage and, therefore, the state’s housing ‘crisis’.   As carefully refuted in CityWatchLA by Casey Maddren and myself, this is a lie for two reasons.  First, the 3.2 million figure comes from a McKinsey Global Institute consultant study that relied on New York and New Jersey housing data to draw conclusions about California.  Other studies show a smaller housing shortage, and if you look at such obvious measures as homelessness, out-migration, over-crowding, and rent-gouging, the figure is even lower.  

Second, if up-zoning has any effect on housing production and costs, it will only produce expensive housing funded by private investors.  These investors do not plunk billions in under-performing capital into profitless low-income housing ventures. As for HUD programs to directly build and operate low-income housing, the Nixon, Reagan, and Clinton administrations eliminated them decades ago. The one remaining public housing option, California redevelopment agencies financial support for low income housing projects, ended in 2011.  This is when the State Legislature and Governor Jerry Brown dissolved California’s local redevelopment agencies.

Big Lie # 2.  Los Angeles does not have enough remaining zoning capacity to meet its housing needs.  The solution, therefore, is to up-zone the city’s residential neighborhoods, through State laws, like SB 330, and local ordinances, like “Transit Neighborhood Plans.”  Anyone who believes this tall-tale only needs to drive, walk, bike, or take the bus down any of LA’s endless, low-rise, mostly-treeless commercial corridors, like Van Nuys Boulevard in the San Fernando Valley, Pico Boulevard on the west side, Vermont Avenue south of DTLA, and Whittier Boulevard on the east side.  You will see miles of one and occasional two story buildings. These long, woefully under-utilized transit corridors could be redeveloped with three story, by-right apartment buildings. Through density bonuses, these corridors could be re-built with mixed-use or apartment-only buildings six or more stories tall.

This is why the most accurate study on LA’s unused zoning capacity, Chapter 7 of the General Plan Framework’s Draft Environmental Impact Report, reveals that LA’s zoning build-out population would be 7 million people, far above the capacity of the city’s infrastructure and public services.  Subsequent density bonus laws lift this zoning build-out figure to 9 million people, or more than double the city’s population. Despite LA’s current building boom, most of this unused zoning capacity remains untouched, far exceeding the latest population forecasts.

Big Lie # 3. Transit ridership will increase if the density of nearby housing is raised through zone changes.   This fix could work if the current housing boom were restricted to low-priced housing rented to transit-dependent low income tenants.  But, this is not the case. In Los Angeles new “transit oriented development” (TOD) decreases transit ridership because it is based on private real estate investment.  Since investors are strictly guided by profit maximization, and since the most profitable apartment houses are for the well-off, TOD is really car-oriented, transit-adjacent housing.  These well off tenants rarely ride a bus or subway, even when it is close by. They own cars and stick with them for most trips, the main reason LA’s bus and subway ridership continues to plummet.

As you can see from this first half of the article, these are familiar themes that apply directly to Santa Monica. Santa Monica does not need more housing, just more affordable housing that cannot be produced by private profit seeking developers. When these developers do build their high end apartments in our City they give us a code required fig leaf (of about 8%) of affordable units which only makes their pricier units even more expensive. 

Our City already has plenty of capacity, like Los Angeles, in its existing zoning, particularly along the boulevards, to meet all its foreseeable future population housing demand. It does not need up zoning.  And finally,  transit oriented development has no impact on traffic congestion or increasing public transit ridership as the new development around transit stations is only for rich tenants who will always drive cars. 

In short, up zoning entire Cities is bad public policy with no net benefit to the Cities forced by the State to endure its burdens. To be continued next week. 

For Santa Monica Architects for a Responsible Tomorrow

Sam Tolkin, Architect; Dan Jansenson Building and Safety Commissioner, Architect; Mario Fonda-Bonardi, AIA, Planning Commissioner; Ron Goldman, FAIA;  Thane Roberts ,Architect; Bob. Taylor, AIA; Phil Brock, Arts Commissioner. 

Related Posts

Why Horse Riding Apes Were Seen on Venice Beach This Week

April 25, 2024

April 25, 2024

President of 20th Century Studios Steve Asbell Reposted the Event on X By Zach Armstrong Even for those who are used...

(Video) Gray Fog Makes Ocean Unseeable at Santa Monica State Beach

April 25, 2024

April 25, 2024

The Fog Made for an Ominous Atmosphere as Nothing Was Visible Beyond a Short Distance Into the Waves @smmirrornews Sea...

Caitlin Cronenberg’s Scintillating Debut Film Humane Is A Deadly Comedy of Terrors

April 24, 2024

April 24, 2024

Director Caitlin Cronenberg and Star Emily Hampshire Discuss Making of the Film The new film Humane, the feature film debut...

Patrick’s Roadhouse Closes, Seeks Donations to Help Secure New Lease

April 24, 2024

April 24, 2024

A GoFundMe Has Been Created to Save the Dining Outpost, Which Has So Far Raised Funds by 182 Donors By...

Two Prominent Lists Rank SMMUSD Highly Among L.A. and California Districts

April 24, 2024

April 24, 2024

The High Rankings Come Amid Efforts to Separate SMMUSD and Establish an Independent Malibu Unified School District By Zach Armstrong...

Enroll at Camp Galileo for a Summer of Innovation, Friendship and Fun

April 24, 2024

April 24, 2024

Camp Galileo is ready to enroll campers this summer at its five West Los Angeles locations.  Every week is a...

Venice Shorts: RVs Return in a Matter of Days along Washington Blvd

April 24, 2024

April 24, 2024

Eight RVs now parked again along Washington Boulevard on both sides of the street, what can be done to stop...

Luca Guadagnino’s New Film Challengers Serves Up a Sexy Tennis Drama

April 24, 2024

April 24, 2024

Zendaya Stars in a Love Triangle for the Ages in this Must-See Film By Dolores Quintana Academy Award and BAFTA...

Caltrans District & Provides Update on Topanga Canyon Landslide Closure

April 23, 2024

April 23, 2024

Landslide More Serious than 1940s Slide, Involves Thousands of Rocks Caltrans District 7 has updated the situation related to the...

Drescher Planetarium Offering Free Virtual Shows in May

April 23, 2024

April 23, 2024

These Shows Will Cover Topics, Including Ground-Based Observatories, the Kuiper Belt and Oort Cloud, SpaceX Competitors, and More Santa Monica...

SMC to Host Free Talk by Inspirational Speaker Dee Hankins

April 23, 2024

April 23, 2024

Drawing from Personal Experience, Hankins Emphasizes Transformative Power of Resilience to Overcome Adversity Santa Monica College is set to host...

Ciela Senior Living Evacuated by Parking Garage Fire

April 23, 2024

April 23, 2024

One Woman Sustained Injuries A woman sustained injuries during a fire evacuation at Ciela Senior Living in Pacific Palisades, according...

Venice Shorts: RVs Cleaned and Cleared along Washington Blvd

April 23, 2024

April 23, 2024

Buses, campers and RVs are removed as far as the eye can see along this troubled Venice thoroughfare By Nick...

Supreme Court Debates Legality of Ticketing Homeless Individuals, Hears Grants Pass Case

April 22, 2024

April 22, 2024

Landmark Case Raises Questions of Cruel and Unusual Punishment The Supreme Court engaged in a lengthy debate on Monday, lasting...

Taste of the Nation Returns to Culver City: Culinary Event Devoted to Fighting Childhood Hunger

April 22, 2024

April 22, 2024

Top Chefs and Tastemakers Join Together May 4th for No Kid Hungry’s Charity Event Taste of the Nation for No...