By Roger Vincent
Los Angeles developer Cliff Goldstein just completed a plush new apartment complex on the Westside, but that’s the last one he’s going to build for the foreseeable future.
Even though demand for housing in the region is red-hot, many people who build apartments for a living have paused putting shovels in the ground because, they say, it’s just too hard to turn a profit.
“It’s a needle in a haystack to find an opportunity that makes financial sense to build today,” Goldstein said.
Ari Kahan used to have multiple projects with as many as 800 total units being built in Los Angeles at any given time. No more, he says.
“We haven’t bought a site with the intention to develop it in over two years,” he said. “I don’t know when we will be building in L.A next.”
The supply of fresh rental units, which make up the bulk of new housing in Los Angeles, is petering out despite robust demand. The vacancy rate is among the lowest in the country, while rental rates are among the highest nationwide.
