Los Angeles hasn’t seen this kind of buzz in a while — new listings under $1 million are showing up across the county. For a city long associated with sky-high home prices, that number feels like a relief to many would-be buyers.
But beneath that optimism lies a more complex story about what’s driving these listings — and what it means for the city’s future housing supply.
At JDJ Consulting Group, we spend every day helping developers, investors, and property owners navigate the local permitting and zoning maze. So, when we see a sudden uptick in “affordable” listings, we look beyond the headlines to what’s really happening in the pipeline.
1. A Surge That Signals Shifts in the Market
If you browse Reddit or Zillow right now, you’ll notice a wave of single-family homes and condos under $1 million — especially in areas like the San Fernando Valley, East LA, and parts of the South Bay.
This isn’t necessarily a sign that prices are falling across the board. Instead, it reflects a new wave of smaller, infill developments and rehabs entering the market.
Developers who started projects in 2022 or 2023, when financing was still relatively accessible, are now bringing units to completion. With construction costs stabilizing slightly and high-end buyers stepping back, more mid-tier projects are being listed — creating that “under $1M” buzz.
In short: the listings show momentum from older entitlements, not necessarily a robust new construction cycle.
2. The Hidden Lag: Permitting and Entitlement Bottlenecks
Every new housing unit in Los Angeles starts with one thing — a permit.
And right now, that’s where the slowdown sits.
Between 2021 and 2024, permit processing times in L.A. County nearly doubled in some jurisdictions. Planning reviews, zoning clearances, and environmental documentation continue to hold back delivery timelines.
What you’re seeing in the “new listings” this fall likely represents projects that broke ground two or three years ago, when developers still had pre-approved entitlements or open financing windows.
But newer projects — the ones still trying to get through city review — are stalling. And that means this bump in sub-$1M listings could be a temporary plateau, not a sustainable trend.
3. Buyers See Opportunity — Developers See Caution
For buyers, more listings under $1M feels like progress. It opens the door for entry-level ownership, especially in neighborhoods previously priced out of reach.
For developers and builders, however, the picture looks different.
- Land prices haven’t dropped significantly.
Many infill parcels remain overpriced relative to allowable density. - Financing remains tight.
Lenders want guaranteed returns, and smaller projects struggle to pencil out when carrying costs rise. - Regulatory delays persist.
Zoning reviews, CEQA compliance, and utility coordination can stretch for months — sometimes years.
That combination means few developers are eager to start new sub-$1M projects today. Instead, they’re completing what’s already in motion.
At JDJ Consulting, we’re seeing more clients press pause on speculative builds, waiting for clearer signals from the market or faster turnaround from city departments.
4. Where These Homes Are Coming From
The majority of these sub-$1M listings are concentrated in:
- Northeast Los Angeles — Highland Park, Glassell Park, and Eagle Rock still see subdivided lots and ADU conversions entering the market.
- South L.A. and Inglewood — older single-family rehabs and duplex-to-condo conversions.
- San Fernando Valley — small-lot developments and post-2020 ADU additions.
These are not brand-new master-planned communities; they’re piecemeal additions to the existing housing fabric.
That’s important because it means the overall housing capacity isn’t expanding dramatically. We’re simply repackaging existing lots into smaller, slightly more affordable forms.
5. Why the Supply Pipeline Still Matters
The key question for Los Angeles isn’t whether more listings are showing up now — it’s whether more units will enter the pipeline in 2026 and beyond.
And right now, that pipeline looks constrained.
City-level reforms like SB 9 and ADU-friendly zoning helped on paper, but implementation remains uneven. Developers often face zoning conflicts between local ordinances and state housing laws.
Until those issues resolve — and until the Department of Building and Safety improves coordination with Planning — we’ll continue to see housing availability fluctuate rather than steadily grow.
6. What Developers Can Do Right Now
If you’re a builder or investor eyeing this market, now’s the time to plan ahead.
Here’s what we recommend:
- Start your entitlement work early. Even a simple project can take 12–18 months for full city approval.
- Use zoning consulting to unlock site potential. Many “unbuildable” parcels can actually work with strategic lot adjustments or variances.
- Factor in review delays. Build realistic schedules that anticipate Planning review and Plan Check slowdowns.
- Leverage state housing incentives. Programs tied to density bonuses or affordable components can offset rising costs.
At JDJ Consulting Group, we help clients map out this process — from pre-submittal to final sign-off — to minimize risk before breaking ground.
7. Looking Ahead: 2026 and Beyond
The 2025 surge in listings might feel like a market correction, but it’s also a signal of a pending bottleneck.
Once this current crop of projects sells, new supply could dry up if entitlement pipelines don’t refill. That’s why proactive planning — especially around zoning and permit strategies — will separate successful developers from those caught waiting on approvals.
Los Angeles still needs tens of thousands of new units to meet demand. Whether they’re priced under $1 million or not, each project depends on a system that’s still struggling to keep pace.
That’s the real story behind this week’s Reddit trend — not just more listings, but a reminder of how fragile the city’s development rhythm really is.
Final Thoughts
The rise in sub-$1M listings offers hope for buyers — but it’s not the full picture. These homes represent old efforts finally coming to market, not a sudden easing of L.A.’s housing constraints.
If anything, the current activity underscores the importance of faster permitting, smarter zoning, and early-stage strategy.
At JDJ Consulting Group, we believe real progress will come when the city’s regulatory systems align with its housing goals. Until then, every “affordable” listing will be worth celebrating — but also worth examining for what it truly represents: a rare success story in an otherwise challenging development environment.
