By Jack Skelley
January 17, 2025
On January 7, 2025, when sparks began igniting the communities of Pacific Palisades, Malibu, Pasadena, Altadena, Hollywood, and others, the city of Los Angeles had been struggling to produce 486,379 new housing units by 2029, a number mandated by California’s Regional Housing Needs Assessment (RHNA) to address the shortfall.
Add to that deficit the equally daunting property losses from the L.A. fires—now estimated to cost in excess of $250 billion, and rising. According to Associated Press reports, the fires could be the costliest natural disaster in U.S. history.
Amid widespread concern about the ability and means to adequately rebuild, proposals flourish. Addressing the need for them, ULI Los Angeles Chair Ryan Altoon says, “ULI Los Angeles has long prioritized housing as a pillar of equitable and sustainable urban development. Now, producing new housing—and replacing the thousands of homes lost—requires innovative solutions while maintaining best practices. Our commitment to housing accessibility must prioritize responsible land use and resilient communities, especially in the face of extreme climate realities.”
Los Angeles, already suffering a severe affordability crisis—one of the worst in the nation—now faces an even more extreme housing shortage. Thousands of housing units were incinerated in simultaneous urban wildfires. The result is an instant surge of displaced people, with skyrocketing rents further escalating the numbers of the unhoused.
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Rebuilding market-rate housing
Multifamily developers—such as Sean Burton, CEO of CityView, Los Angeles County’s “most active multifamily developer”—have an impact on the market-rate side the equation. L.A.’s housing goals are already falling behind, Burton says, noting that the fires not only remove needed units but also immediately make it more expensive to build, a factor that was already at play.
“We have absolutely pledged against gouging,” Burton says. “But expect a Hunger Games–style competition for building materials and furnishings—including items such as washers and dryers—that will drive up prices. We need some kind of rebuilding authority to attack this [problem] in a significant way. And we need to use our strength as a region to create these homes. It will require an unprecedented effort, and the kinds of national experts who worked on disasters such as hurricanes Katrina and Sandy.”
Burton endorses actions by Governor Newsom and Mayor Bass’ executive order as “a great start.” Newsom’s executive orders include suspending permitting and review requirements under the California Environmental Quality Act (CEQA) and the California Coastal Act, both often seen by developers and housing advocates as a hindrance to achieving housing goals.
Although the CHIP upzoning goals are positive, Burton maintains that they are not enough: “We need CHIP 2.0 to significantly increase units.”
