Aging Stock Puts L.A. County’s Cheapest Rentals at Risk

A USC study from the Lusk Center for Real Estate examines the age of Los Angeles County's housing stock and finds that many of its least expensive rentals sit in older buildings that may soon need major repairs or face demolition. The average county home is 58 years old, which is 11 years older than the California average and 16 years older than the national average, reflecting a construction boom in the 20th century that has since slowed sharply. Researchers say the most affordable units tend to be in five-to-19-unit buildings constructed before 2000, a group that makes up 43% of the county's multifamily stock with five or more units.

The study points to Koreatown-Mid-City, Hollywood-Studio City and Burbank-Glendale as areas where naturally occurring affordable homes make up the largest shares of rentals. Older neighborhoods such as Cypress Park and South Park are also cited. A spokesperson for Mayor Karen Bass said the city needs both preservation and new affordable construction. An economist argued that private owners are unlikely to prioritize lower-cost units because luxury projects earn more, so public funding may be needed.

For developers and lenders, the takeaway is that renovation costs for older affordable stock may be hard to recover without subsidies or rent restrictions.