August 11, 2025 #1 Local News, Forum, Information and Event Source for Venice Beach, California.

Low-Cost Housing? State Keeps Ignoring the New Realities

By Tom Elias, Columnist

From Sacramento comes word that the median price for a single-family home in California skyrocketed by 24 percent over less than one year, topping $810,000 in May, a rise of almost 30 percent from the previous year.

At the same time, one developer of “affordable” housing in Southern California revealed that the average cost of a two-bedroom unit in a new four-story, 48-unit building that will target low-income families, comes to $729,265. Much of that tab will be picked up by local taxpayers, and the building is pretty typical of so-called affordable housing all around California.

Such buildings, the developer said, will likely “increase affordable housing opportunities for families who often have difficulty finding appropriately sized housing” in the region.

Even if thousands of buildings like this one were constructed around the state over the next six years, they wouldn’t come close to solving California’s housing shortage, which some experts say is the main reason median prices keep rising steeply. Gov. Gavin Newsom plumped during his 2018 campaign for building 3 million new units by 2025, a total that won’t even be approached.

Rather than focusing on ways to really resolve the state’s housing problem – and thereby deal simultaneously with the homeless crisis which now sees more than 160,000 individuals sleeping outdoors or in mass shelters every night, winter or summer – state and local officials persist in trying to build ever more expensive new structures.

That’s happening, unreasonably, while the potential solution involving very little new construction stares these same local and state “experts” in the face.

The answer is simple, and will resolve problems for many disparate interests. It’s also inevitable, even if many state legislators and developer interests refuse to see it.

That solution has been obvious since the beginning of the coronavirus pandemic, when thousands of businesses sent their white collar workers home to do their jobs at the same time the businesses themselves started campaigning to get out of long-term leases.

Because many of those companies are delighted to let employees stay home post-pandemic, thus cutting their real estate costs, billions of square feet of former office space are now vacant, most of it likely to stay that way for the foreseeable future.

Law firms, stock brokerages, insurance companies, internet firms – essentially office-based businesses of all types – are dumping their leases, moving to smaller quarters and enjoying the fact their employees appear to be just as efficient away from the office.

Polls indicate about two-thirds of onetime office workers prefer to stay home, where they can set their schedules more independently and save money on both child care and commuting costs.

That leaves building owners holding the bag. Many are real estate investment trusts whose shares are sold as investments to folks expecting regular dividend payments. The main way for them to recover their investments in office towers and other buildings will be to turn them at last partly into residences, as this column first suggested in April 2020, when the trend became obvious to anyone looking.

The current office vacancies do not exist just in California. The New York Times the other day headlined a long-ish story on the office-conversion scene there “Eerie Emptiness in New York.” Quite a contrast to the many previous tales of overcrowded Manhattan.

Once buildings are converted either wholly or in part to residential units, much of the housing shortage will disappear.  It’s a far cheaper and easier task than building billions of new square feet, often in places where existing residents don’t want them.

That means fewer lawsuits, less disruption of established neighborhoods, more convenience for most residents. It also means fewer construction jobs, although there will still be plenty of work involved in drywall, carpentry, electricity and plumbing shifts, plus construction of new elevators. But the buildings’ profiles and footprints will not change, giving neighbors little to gripe about.

The real question here is why legislators and local city council and county board members keep pushing more and more new construction, which is obsolete and hard to sell even before it’s built. The answer most likely lies in campaign donations from developers and building trade unions.

So once again, it’s money interfering with inevitable progress and problem solving.    

Email Thomas Elias at tdelias@aol.com. His book, “The Burzynski Breakthrough, The Most Promising Cancer Treatment and the Government’s Campaign to Squelch It” is now available in a soft cover fourth edition. For more Elias columns, visit www.californiafocus.net

Related Posts

Brand New Palisades Estate Designed by Ken Ungar Enters Market at $22.5M

August 11, 2025

August 11, 2025

The listing comes amid continued demand for ultra-luxury housing in Los Angeles’ Westside neighborhoods, where properties exceeding $20 million remain...

Entertainment Firm Extends Long-Term Commitment to Santa Monica Office Hub

August 11, 2025

August 11, 2025

The property underwent extensive renovations in recent months, including a full seismic upgrade, a redesigned main lobby The Swig Company...

10-Unit Venice Apartment Complex Steps from Oceanfront Lists for $4.6M

August 10, 2025

August 10, 2025

The property offers significant investment potential, with up to eight of the 10 units available vacant at close of escrow...

Santa Monica Public Library Announces September Events

August 9, 2025

August 9, 2025

Among the events is Puppets in the Library, classes on how to write engaging scenes, celebrations of Hispanic Heritage Month, and...

Side-by-Side Beachfront Homes in Santa Monica  Hit Market for $23M Each

August 4, 2025

August 4, 2025

Designed with minimalist luxury, the residences showcase floor-to-ceiling glass walls and views of the Pacific Ocean Two modern beachfront homes,...

Three-Bed Luxury Townhome on Brooks Ave. Hits Market for $2.6M

August 3, 2025

August 3, 2025

The 2,480-square-foot property features French Oak floors, custom walnut cabinetry, and expansive windows that flood the living space with natural...

14-Unit Apartment Complex on Sawtelle Blvd. Lists for $3.25M After Price Cut

July 27, 2025

July 27, 2025

Plans have been approved to convert an existing laundry room into a 536-square-foot accessory dwelling unit  A 14-unit apartment complex...

Herbie Hancock to Headline Hollywood Bowl in August

July 25, 2025

July 25, 2025

Known for his decades-spanning career, Hancock is one of jazz’s forward-thinking voices Jazz legend Herbie Hancock is set to return...

CicLAvia to Open 6.75 Miles of Car-Free Streets from Culver City to Venice

July 23, 2025

July 23, 2025

The event features four hubs: Arts District on Washington Blvd., Downtown Culver City near the Culver Hotel, Mar Vista on...

County Offers $58M in Parks Grants, Hosts Info Session Wednesday

July 20, 2025

July 20, 2025

The grants aim to enhance park equity, access, and environmental benefits, with awards ranging from $100,000 to $4 million The...

(Photos) See Inside This $60M Holmby Hills Mansion Inspired by a Madrid Museum

July 20, 2025

July 20, 2025

Soaring 30-foot ceilings, adorned with 400-year-old Moorish columns and 16th-17th century Florentine carvings, greet visitors Nestled on the prestigious 133...

Five-Unit Marina del Rey Property with Ocean Views on Sale for $5.29M

July 20, 2025

July 20, 2025

The breakdown includes two one-bedroom-plus-loft units, two two-bedroom-plus-loft units, and one one-bedroom, one-bath unit, with four exempt from rent control...

Newly Built Mar Vista Home with Spa and Plunge Pool Offered at $3.6M

July 13, 2025

July 13, 2025

The home’s powder room stands out with Roman Clay walls and a marble sink, while European oak floors, brass fixtures,...

Multi-Family Venice Property on Rare Double Lot Lists at Over $5M

July 7, 2025

July 7, 2025

In total, the four units provide 5,398 square feet of living space A multi-family property located one block from Venice...

Vacant Alphabet Streets Lot Lists for $1.99M After Price Cuts

July 7, 2025

July 7, 2025

The site previously held a 6,001-square-foot residence built in 2018, which included a basement, possibly streamlining the permitting process for...