Study: Legalizing single-family home conversions could nearly double LA's new housing

In a commentary piece in CalMatters, Arthur Gailes cites new research that reveals a relatively simple action that could nearly double the number of new homes being built in Los Angeles: legalizing the conversion of existing single-family homes into multifamily buildings.

According to research from the American Enterprise Institute's Housing Center, legalizing the conversion of older homes would add roughly 13,600 additional new housing units per year. 

As Gailes explains, older LA homes are already being replaced — usually by larger, more expensive single-family homes, not adding anything to the housing supply. "Legalizing starter homes doesn’t speed up that cycle; it changes what gets built. A four-home conversion produces homes valued at around $1.2 million each — roughly one-third the McMansion price. Even as individual homes get cheaper, total value rises. L.A. taxes this, so city revenue grows while families pay less."

For Gailes, legalizing starter home conversions "solves supply, affordability and revenue problems at once." For Los Angeles, a city that has outgrown its single-family origins, this opportunity could make a meaningful dent in the city's housing crisis.