Housing Shortage Persists Despite Population Decline

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UCLA Luskin’s Michael Lens spoke to the Los Angeles Times for an article explaining why California housing prices have defied the laws of supply and demand, with mortgages and rents remaining stubbornly high even though the state’s population has declined in recent years. One reason is that, for decades, the pace of housing production did not keep up with demand, creating a backlog made even more enormous by the surge of Millennials now seeking to enter the housing market. “The cost of living in California and Los Angeles is so high … that we know a lot of people can’t move here and we know a lot of people can’t remain here, because they are priced out,” said Lens, a professor of urban planning and public policy.

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Storper on Tug-of-War Over Senate Bill 9

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A Planetizen article on actions taken by municipalities opposed to Senate Bill 9, the California law allowing property owners to build additional units on lots zoned for single-family housing, cited research by Michael Storper, distinguished professor of urban planning at UCLA Luskin. Four Southern California cities have filed suit against the state, arguing that permitting the subdivision of single-family lots violates the California Constitution by taking away the rights of charter cities to have control over local land-use decisions. Storper issued a declaration in support of the plaintiffs that included a copy of a journal article he co-authored in 2019 that challenged the theoretical underpinnings that led to SB 9, which is intended to provide affordable housing options for Californians. “Blanket changes in zoning are unlikely to increase domestic migration or to improve affordability for lower-income households in prosperous areas,” the authors wrote. “They would, however, increase gentrification within metropolitan areas and would not appreciably decrease income inequality.”

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On the Chronic, Day-to-Day Toll of Rising Temperatures

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V. Kelly Turner, associate director of the UCLA Luskin Center for Innovation, joined the podcast America Adapts for an expansive conversation on the effects of rising temperatures on public health. While record-setting heat has received widespread media coverage over the summer, Turner stressed that governments must develop not just climate emergency plans, but long-term resiliency strategies that protect people from the chronic day-to-day experience of elevated temperatures. “We talk a lot about extreme heat and we talk a lot about mortality and we talk about heat sickness, but what we don’t really talk about is the myriad ways that heat affects well-being in our daily lives. It affects your cognitive abilities, your emotional state. You’re more likely to be angry, unable to concentrate,” Turner said. “I think these are ways that the lived experience for many Americans is going to be degraded because they don’t have access to cool communities or cool infrastructure.”

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Safety of Tap Water Discussed by Pierce on NPR Broadcast

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Gregory Pierce, director of the Human Right to Water Solutions Lab at the UCLA Luskin Center for Innovation, participated in a discussion about the safety of tap water in California organized by KQED, the NPR and PBS member station for Northern California. Pierce, who received his master’s and Ph.D. degrees from UCLA Luskin Urban Planning, spoke about findings in a recent study conducted in cooperation with the University of Texas at Austin that found social factors — such as low population density, high housing vacancy, disability and race — can have a stronger influence than median household income on whether a community’s municipal water supply is more likely to have health-based water-quality violations.

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Tilly on Labor Actions Spreading Across State and Nation

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Urban Planning Professor Chris Tilly spoke to CNBC about labor actions across California — 55 in 95 locations that commenced just since the beginning of 2023. In Los Angeles, striking Hollywood writers and actors have joined city employees and hotel and hospitality workers on the picket line in what some are calling a summer of solidarity. Union representatives in the state say they are being contacted by organizers from around the country who are seeking guidance on stepping up their own labor actions. “I think California is ahead of the country, but it’s pointing to a crisis that’s likely to happen nationwide,” Tilly said.

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Venture Capital Data Shows L.A. Struggling to Meet Diversity Goals

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The Los Angeles Business Journal shared findings from a UCLA Luskin report that analyzed the diversity of venture capital investments in the Los Angeles region in 2022. While Greater L.A. leads the country for the amount of capital funded to entrepreneurs from diverse backgrounds, progress in meeting racial and gender equity goals is lagging, according to the report led by Jasmine Hill, assistant professor of public policy. Hill’s team produced the report in partnership with PledgeLA, the Annenberg Foundation’s coalition of Los Angeles-based tech and venture capital firms that have committed to prioritizing equitable access to capital. The researchers found that less than one-third of PledgeLA firms’ 2022 investments went to companies led by women, Black or Latino founders, and these companies received only 4.6% ($6.4 billion) of the $139 billion invested. “If we’re being honest, it’s still way below where any of us would want it to be,” one founding member of PledgeLA said.

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Homeownership Becoming ‘Out of Reach’ for Most Angelenos, Manville Says

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The median price of a home in Los Angeles is expected to soon hit $1 million, and UCLA Luskin’s Michael Manville recently told the Guardian that “homeownership for many people is now out of reach.” The professor of urban planning noted that most homebuyers do not have $400,000 for a typical 40% down payment, nor $4,000 a month to put toward mortgage payments. “The million-dollar home price is like the tip of a big iceberg” because soaring home prices also impact the cost of rental homes and apartments, contributing to the ongoing homelessness crisis in California, he explained. Manville also spoke to Bloomberg News about one approach to tackling the affordable housing crisis: building more duplexes, triplexes and similar “middle housing” options. Decades ago, when there was a lot more empty land, large areas were zoned for single-family homes. “There was always the next valley to go to,” Manville said. “Now, that’s much harder.”

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A Far-Right Party Surges in Germany

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Helmut K. Anheier, adjunct professor of public policy and social welfare at UCLA Luskin, wrote a Project Syndicate commentary on the rising popularity of Germany’s largest far-right party. Once dismissed as a fringe group of radical nationalists, the Alternative für Deutschland (AfD) has surged in the polls thanks to infighting and missteps by Germany’s political mainstream, as well as to the Ukraine war, which disrupted Germans’ sense of security as well as their energy supply. If the party’s popularity holds — it’s now polling at 21% support, up from 11% last year — it could position itself to becoming a coalition partner or leader in future elections, taking up the mantle of legitimacy that far-right parties in France, Italy and Sweden have adopted. The party has offered new clues about its agenda. Björn Höcke, a state party leader who has become a standard-bearer for the AfP, declared that “this EU must die, so that the real Europe can live.”

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Rowe Comments on Regulation of Hemp-Derived Cannabinoids

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UCLA Luskin lecturer Brad Rowe commented in an NBC News story about government efforts to regulate a cannabinoid compound derived from hemp that, because of a legislative loophole, can be sold legally. The compound, delta-8 THC, is among hemp-derived cannabinoids that the FDA has urged Congress unsuccessfully to regulate, leading some states to restrict or ban the substance. An omission in the 2018 Farm Bill allows vendors to sell the compound legally provided it comes from hemp, not marijuana. But concerns have been raised about unregulated delta-8 THC products. “People are claiming it’s naturally derived, but a great amount is not naturally occurring, and that’s concerning,” said Rowe, an expert on drug and criminal justice policy who specializes in cannabis law. “When you stack it up against fentanyl or even a bad alcohol problem, it’s not as harmful. But it can cause distress if these products aren’t used and manufactured properly,” he said.

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Avila on New Affordable Housing Project in South Los Angeles

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UCLA urban scholar Eric Avila provided historical context for an LAist story about a new affordable housing project that recently broke ground in South Los Angeles. The property, formerly subject to a 1906 racially restrictive covenant, is being developed to address a shortage of affordable homes, including more than 100 new apartments for low-income renters. Avila, who holds appointments in history, Chicana/o studies and urban planning, explained that racial covenants were in common use throughout the early 20th century and used extensively, accompanying booming suburban development in L.A. and across the country. “They essentially created these walls that prevented Black, brown and Asian people from purchasing property in white neighborhoods,” Avila said. A landmark 1948 U.S. Supreme Court case, Shelley v. Kraemer, made such covenants illegal nationwide, but they continued to exist in property deeds. “It’s the lasting effects, or the legacy of these policies, that we live with today,” Avila said.

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