“Pencils down”: LA multifamily developers slow construction as high costs, ULA loom over deals

Los Angeles developers are shying away from building more units despite an ongoing housing shortage in the city.  Those in the industry say the market has reached a point where new apartment construction simply doesn’t pencil, the Los Angeles Times reported — and the numbers agree. L.A. County delivered 2,376 new apartment units in the first half of the year, down nearly 9 percent from the same period last year, according to Kidder Mathews.  About 25,636 units were under construction, marking a roughly 15 percent decline.  Interest rates that jumped after 2022 have made financing far more expensive, while construction […]

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