The Case for More Density in Los Angeles: What It Means for Developers

Los Angeles faces a serious housing shortage. Rising rents and limited supply push people out of the city and state. Homelessness has also grown worse, driven mainly by high housing costs. Businesses struggle to recruit and retain workers, while families struggle to stay.

For developers, this creates both a challenge and an opportunity. The market needs new housing, but local rules and opposition can stall projects. JDJ Consulting Group helps clients cut through these barriers and bring projects to life.

Why Los Angeles Needs More Housing

California misses its housing goals year after year. Demand remains high, but new construction lags far behind. The result is higher costs, displacement, and people leaving the state.

Studies show the main cause of homelessness is housing prices, not drug use. Research also links high housing costs to slower economic growth. In short, Los Angeles must build more housing to stay competitive and livable.

Why Sprawl Won’t Work

Los Angeles cannot sprawl outward anymore. The Pacific Ocean, mountains, and desert block expansion. The land that remains is either already built or unsuitable for housing.

Even if sprawl were possible, it would not be wise. Sprawl creates pollution, long commutes, and costly infrastructure. Instead, the solution is clear: build upward and inward through infill and multifamily projects.

The Benefits of Density

Denser, walkable communities bring major benefits:

  • Stronger economies. More people nearby means more customers and higher tax revenue.

  • Better land use. Fourteen percent of LA County’s land is parking. Converting even part of it into housing would ease the shortage.

  • Healthier living. Walkable neighborhoods encourage social connections and daily exercise.

  • Less traffic. Compact communities make public transit and walking more practical.

These benefits align with state and city housing goals, including density bonus programs and SB 9.

Clearing Up Misconceptions

Concerns about density are common, but most are myths.

  • Crime and property values. Studies show affordable housing reduces crime and increases values. Irvine proves the point—it is safe and has more affordable housing than nearby cities.

  • Traffic. Suburban layouts force everyone into cars. Denser areas make transit and walking realistic, which reduces congestion.

  • Gentrification. Research shows new housing slows rent growth and reduces displacement pressure. Building more, not less, helps renters most.

JDJ Consulting helps clients prepare for these debates with impact studies and outreach plans.

What This Means for Developers

The path forward for Los Angeles is density. That creates opportunities for:

  • Transit-oriented projects near Metro stations.

  • Adaptive reuse of old office and parking lots.

  • Mixed-use buildings that combine homes with retail.

But these projects require expertise to get approved. Entitlements, permits, and community concerns can delay even the best plans. That’s where JDJ Consulting Group adds value.

How JDJ Consulting Group Helps

Our team works with clients to:

With JDJ, developers gain a partner who knows Los Angeles codes and politics.

Conclusion

Los Angeles cannot expand outward anymore. To solve its housing shortage, the city must grow upward and inward. Denser, walkable communities are the best path forward.

For developers, this shift creates strong opportunities. With the right guidance, projects can meet demand, overcome opposition, and deliver lasting value.

At JDJ Consulting Group, we help turn that potential into reality. Now is the time to build.





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