Failed State Update: LA Apartments

Roger Vincent at LAT:

• Los Angeles apartment construction has dropped by close to a third in three years as developers struggle with unprofitable economics and regulatory uncertainty.
• Institutional investors are pulling money from L.A. real estate projects, preferring other cities with more predictable development rules and profits.
• New apartments need $4,000-$5,000 monthly rents to break even, forcing residents to live farther from their jobs.