Long Beach

What does Long Beach’s plans to build 26,500 new units mean for existing homes? • Long Beach Business Journal – Long Beach, California

Long Beach, California 2022-05-05 12:00:18 –

Long Beach, along with many other cities in the state, faces difficult challenges in meeting housing needs.

City has won state approval A document laying out where new homes can be built for that 2021-2029 housing element. In the case of Long Beach, the city had to show how to secure space to add 26,502 homes over the last eight years.

This is an important process, and the state did not comply because the city did not comply, as authorities and experts agreed that significantly increasing housing supply was the only way to deal with the affordable crisis. Was cracked down.

Staring Long beach residential elementsHowever, I was impressed that almost all of the city’s proposed zoning changes would enable more apartments to meet their needs. Of course, that makes sense. There is basically no land left in the city to build a new single-family home. However, with the development of more than 20,000 new apartments by 2030, there will be significant changes in the city’s housing stock balance.

I contacted a local real estate expert and tried to understand all of this. And I tried to understand what that meant for the long-term value of long beach homes.

Edward Coleson, research director at the University of California, Irvine’s Real Estate Center, said increasing supply of apartments could make single-family homes even more valuable.

“Some people just want a single-family home, but unless demand increases over time and supply increases, it will put more pressure on single-family homes,” Coleson told me. “I thought it was ironic. Even if you solve the problem of affordability, you probably are lowering the affordability of single-family homes because you are not doing such development where people want to live. . “

And it remains an unsolved question whether the neighborhoods of most existing single-family homes on Long Beach will maintain the character that has historically made them so desirable in the long run.

Rick Payne, a professor of real estate programs at Long Beach City College, said: “New apartments tend to generate more people and more traffic in the same area, which can have some calm impact on single-family home pricing.”

State-level efforts to enable further development of single-family home parcels, such as Senate Bills 9 and 10, which Governor Gavin Newsom signed last year, also have their own implications. With SB 9, you can build a duplex on a parcel of a single-family home and split the parcel of the single-family home into two. SB 10 has given cities new authority to upzone near job centers and transit lines.

Long beach officials, including Mayor Robert Garcia, have stated that they want to focus new developments in areas like downtown rather than changing the nature of single-family homes, but many real estate owners have left their homes. You can generate more income by turning it into a duplex or building a backyard grandma’s apartment.

Still, Richard Green, director of the USC Lusk Center for Real Estate, is not convinced that these types of laws will have widespread impact on most regions, at least in the short term.

“I don’t think there will be a big impact right away because the value of the land underneath a single-family home must be higher to dismantle the single-family home and replace it with a duplex. Together the land and the house,” Green said. Told me. “I think the impact of SB9 is very slow.”

However, given the current trajectory of housing policy, Mr Green said more aggressive legislation could be passed over the next 20 years, which could have a significant impact on the neighborhood of single-family homes.

“But I think that’s a good thing, because we need a new unit,” he said.

But for the time being, Long Beach officials seem to intend to allow more development in already dense areas, rather than spreading new homes evenly throughout the city.

In fact, the previous draft of the city’s housing elements was rejected by the state for the following reasons: There was a shortage of new housing in “high resource” areas Like East Long Beach.

The state’s final approval document still contains few new homes in East Long Beach compared to the rest of the city, but certain parcels such as the Marina Shores Retail Center near Seal Beach. The newly proposed conversion from commercial to multi-family housing is sufficient to satisfy state officials.

Based on that process, Long Beach officials seem to want to rethink existing commercial areas to include residential use, rather than building low-density neighborhoods.

This strategy seems to bring victory in two ways. The neighborhood of a single-family home can primarily maintain its character, and more construction in high-density areas can help lower overall home prices.

However, if Coulson’s analysis is correct, especially single-family homes can become even more inaccessible.

So, Coulson said, no matter how much Long Beach is built, it could stay here to realize the concessions that many people have already made, such as more space at a lower cost. rice field.

“We can’t meet everyone’s demand for everyone’s housing at an affordable level everywhere,” he said. “There is always a trade-off between location, price and the type of housing people want to live in.”

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