In the context of Los Angeles history, real estate is the unforgivable “sin against the Holy Ghost.” For decades, local politicians have regaled us with promises. When elected, they changed their tune and essentially gave in to the wild schemes of real estate developers. As I traveled along the Expo Line this afternoon, I passed dozens of large high-rise construction projects.
Theoretically, these projects are based on the principle of increasing the tax base. Unfortunately, the move-ins into the new buildings will leave in their wake an untenable number of vacancies. It’s not as if the new tenants will be new businesses and people who have just moved into the Los Angeles area. In the end, all that will happen will be a combination of untenably high rents and older buildings that are now vacant. And what about the effect on vehicular traffic?
One reason for the huge population of homeless in Southern California is the high price of rental real estate. If it weren’t for rent control, I would be hard put to remain in the Golden State.