The Truth About LA's Housing Crisis: A Developer’s Perspective with Paul Schon

There aren’t enough apartments in Los Angeles. It’s simple economics, the fewer apartments available, the more expensive they’ll be. Skyrocketing construction costs, climbing interest rates, and zoning nightmares have made LA one of the most difficult markets in the world for real estate development and make the housing crisis worse.   In this episode of No Vacancy, we talk to Paul Schon of Schon Development Group, a leading multifamily developer, about the data behind LA’s housing crisis—and what it means for apartment building owners and investors. Discover where opportunities still exist in Southern California’s multifamily housing market and learn how developers are adapting to these unprecedented challenges.   Chapters:  [00:00:00] An in-depth look at why LA’s commercial real estate market is so challenging today [00:01:20] From Real Estate Brokerage to Multifamily Developer Success in LA [00:06:32] Why Developers Refuse to Build in LA Despite the Housing Crisis [00:09:00] Skyrocketing Construction Costs: Hard Numbers Impacting LA Development [00:11:19] Los Angeles Housing Crisis: Why Multifamily Supply Can’t Meet Demand [00:15:00] ED1 Zoning in Los Angeles: Affordable Housing or a Barrier for Developers? [00:20:00] Finding the Right Development Site in LA: Zoning, Parking, and Pitfalls [00:29:34] Vertical Integration in Multifamily Real Estate: A Cost-Control Strategy [00:34:16] Development on Pause: Why LA Real Estate Projects Are Stalling [00:42:00] The Future of Southern California Multifamily Real Estate Development [00:46:00] Political and Regulatory Risks in California’s Real Estate Market [00:52:00] Martial Arts and Resilience: Lessons for Real Estate Investors [00:54:00] Real Estate Lessons for the Next Generation of LA Developers [01:02:00] Habits for Success in Real Estate: Health, Productivity, and Business [01:06:08] Optimism and Core Fundamentals in Los Angeles Real Estate   #LosAngelesRealEstate #CommercialRealEstate #MultifamilyInvesting #RealEstatePodcast #ConstructionCosts #HousingCrisis   This episode is brought to you by Terrakotta AI (https://www.terrakotta.ai/[email protected]) TL;DR: Terrakotta is a web-phone that uses personalized AI voicemails to double the number of contacts you can engage over the phone. Voicemails left using Terrakotta are personalized to every contact and generate more callbacks than generic scripts.   Never miss an episode! Subscribe on your preferred platform and rate our show ⭐⭐⭐⭐⭐: 🍏 Apple Podcast: https://podcasts.apple.com/us/podcast/no-vacancy-with-taylor-avakian/id1768889293 🎧 Spotify: https://open.spotify.com/show/0mqgyJK00yivmqfH8zzLQW?si=f5ab2abbbe734fd7 📺 YouTube: https://www.youtube.com/tayloravakian   Visit us at 🌐 thegroupcre.com   Connect with us on social: X: @TAYVAY_ IG: @Taylor_Avakian FB: https://www.facebook.com/people/Taylor-Avakian-CRE-Broker/61557266265091/ LI: https://www.linkedin.com/in/tayloravakian/