Los Angeles’ Housing Solution: Transforming Vacant Lots into Affordable Homes

Los Angeles faces a challenging housing crisis. Despite a shortage of affordable homes, the city has over 20,000 vacant lots zoned for housing. These unused spaces present a missed opportunity, but some experts see potential for change. A new initiative aims to transform these small lots into ‘gentle density’ housing, such as duplexes and townhomes, sold at more attainable prices than single-family homes.

New Experiment in Affordable Housing

Dana Cuff, director of UCLA’s cityLAB, is leading a phase of the ‘Small Lots, Big Impacts’ initiative. This phase focuses on converting privately owned vacant lots into multiunit housing. Los Angeles has a history of small-scale housing, like Spanish Colonial duplexes and courtyard apartments. However, these options are mostly rentals or high-end properties.

Lately, L.A. has struggled with low homeownership rates, partly due to zoning laws favoring single-family homes. Recent legislation has changed this by allowing more small-scale complexes on vacant lots. Experts believe this could help create affordable homes for sale, especially in neighborhoods lacking mid-density buildings. Emmanuel Proussaloglou, cityLAB co-director, describes the availability of affordable homeownership as a major market gap.

A New Generation of Housing

Los Angeles has lagged in building new housing to meet demand. While some areas, like downtown, have seen a rise in high-rise apartments, other neighborhoods have not kept pace. New development proposals often face opposition from resident groups. Proponents of the ‘Small Lots, Big Impacts’ initiative are optimistic about smaller lots that support more units than a single-family home without altering the neighborhood’s character.

“Building five, six, 12 units on lots meant for one or two homes is a sustainable solution,” said Proussaloglou.

cityLAB’s analysis identified over 20,000 vacant lots suitable for these projects, which constitute only 2% of the city’s privately owned parcels. Despite their small share, they hold significant potential impact.

Initiating the Pilot Projects

This week, the ‘Small Lots, Big Impacts’ initiative announced the three designer-developer teams selected to build pilot projects. The teams will develop small, vacant lots into unique housing complexes with at least five units each. Financial and regulatory support, including low-interest loans from Genesis L.A., will help fund these developments.

Each project must list homes for sale, with some offered below market rates for low- or middle-income buyers. Private-public alliance group LA4LA, the city of L.A., and BMO bank are also supporting this effort. The goal is to showcase feasible, affordable housing options at lower entry prices. This approach not only increases housing units but offers flexibility in housing stock with features like outdoor spaces and built-in communities.

Overcoming Challenges and Moving Forward

The cityLAB initiative began last year with city-owned lots, but progress was slow. This led to a shift in focus to privately owned lots. Christian Stayner, leading one of the pilot project teams, owns a lot on L.A.’s Eastside. Initially hesitant due to financial and regulatory risks, he now, with support from cityLAB and recent legislative changes, plans to develop a six-unit complex on the lot. He hopes this project can inspire similar initiatives.

The other two teams also present innovative designs. One plans to use a cooperative homeownership model, while the other will expedite construction with prefabricated materials. Cuff describes the pilot as a ‘Noah’s Ark’ for new housing, showing multiple paths forward.

The three teams plan to start construction by next summer, providing a model for affordable homeownership on vacant lots.