How Proposition U Restrains Los Angeles Housing Development
Brief
Paavo Monkkonen | Kate Traynor
November 2024
Commercial prices stagnated after Proposition U while residential prices were unaffected. Repealing Proposition U is a critical first step to increasing LA’s housing supply, as it would enable the construction of mixed-use development along commercial corridors. Our study has demonstrated that fears about the impact of development on residential values are unfounded. The only price impact of Proposition U was a reduction in commercial property values. Restoring the development potential of HD-1s would drive private investment to areas that have not yet attracted revitalization, and a repeal could initiate a surge of transit-oriented housing in walkable, amenity-rich neighborhoods.
