End of Downtown Construction Boom May Be Near

Two notable large-scale projects in downtown L.A. have not broken ground on time, which many see as a sign of the end of downtown's real estate boom.

1 minute read

March 1, 2008, 7:00 AM PST

By Nate Berg


"A fickle economy, rising construction costs, and skittish buyers are just a few of the factors that have slowed the frenzied development in downtown Los Angeles to a crawl. But as two of the area's largest planned projects-Frank Gehry and the Related Companies' $3 billion Grand Avenue Project and the $1 billion Park Fifth condo towers-failed to break ground as expected during the last few months, and as several smaller projects went under, hushed conversations between architects, developers, and real estate agents persist in the shadows of half-finished skyscrapers: Is downtown's rally over?"

"'I have the feeling that this is not a good time to be building skyscrapers, in LA or anywhere,' said Peter Slatin of the real estate website TheSlatinReport.com (and AN contributor). 'It's risky to start building into a market that's starting to decline without knowing how long the decline will last.' According to the National Association of Realtors, U.S. condo sales were down by about 11 percent in 2007, while residential construction dropped by almost 17 percent. According to most projections the numbers aren't expected to improve this year."

Tuesday, February 26, 2008 in The Architect's Newspaper

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Close-up of "Apartment for rent" sign in red text on black background in front of blurred building

Trump Administration Could Effectively End Housing Voucher Program

Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

April 21, 2025 - Housing Wire

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 30, 2025 - Diana Ionescu

Close-up on Canadian flag with Canada Parliament building blurred in background.

Canada vs. Kamala: Whose Liberal Housing Platform Comes Out on Top?

As Canada votes for a new Prime Minister, what can America learn from the leading liberal candidate of its neighbor to the north?

April 28, 2025 - Benjamin Schneider

Washington

Washington State’s Parking Reform Law Could Unlock ‘Countless’ Acres for New Housing

A law that limits how much parking cities can require for residential amd commercial developments could lead to a construction boom.

May 1 - Streetsblog USA

Bluebird sitting on branch of green bush.

Wildlife Rebounds After the Eaton Fire

Following the devastation of the Eaton Fire, the return of wildlife and the regrowth of native plants are offering powerful signs of resilience and renewal.

May 1 - AP News

1984 Olympics

LA to Replace Inglewood Light Rail Project With Bus Shuttles

LA Metro says the change is in response to community engagement and that the new design will be ready before the 2028 Olympic Games.

May 1 - Newsweek

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.