DTLA's Residential Market Leads The Way In The City’s Revitalization

Over the last two decades, the renaissance of Downtown Los Angeles has turned what was once a strictly 9-to-5 business district into a thriving urban destination with a global presence.

At the heart of this transformation is a residential population that has grown from fewer than 20,000 in 1999 to almost 100,000 today, making it one of the fastest-growing communities in the country. To chronicle this evolution and forecast the city’s future, the Downtown Center Business Improvement District, an organization that continues to be an integral part of DTLA’s evolution, released DTLA Residential: A Guide to the Residential Market in Downtown Los Angeles. 

DCBID Executive Director Nick Griffin said that the growth of Downtown LA’s residential community has been a defining factor in the rise of the city and will play an even more prominent role in shaping its future.

“Although some segments of the local economy have struggled since the pandemic, residential has come back stronger than ever, with occupancy rates of 90% and rents at record levels, though still considerably more affordable than comparable units on LA’s Westside,” he said. 

DCBID surveys have repeatedly demonstrated that the chief reason people choose to live in DTLA is the urban experience it provides through its diverse amenities and attractions, walkable and bikeable neighborhoods, and transit access that eliminates the need for a car for its residents.

Griffin said the appeal of downtown living has led to significant residential development over the last 20 years. Beginning with only 12,000 units in 1999, by the end of 2023, the Downtown LA market will have more than 45,000 residential units: 31,000 market-rate rentals, 6,500 condos and 7,500 affordable housing units. 

He added that this growth has occurred in three distinct waves of development. From 1999 to 2008, 5,463 new units were delivered, 87% of which were adaptive reuse projects converting older commercial properties to residential. 

“Following the financial and housing crisis of 2008, builders shifted their focus to ground-up development, delivering 6,922 new units, 77% of which were mid-rise new construction,” Griffin said. “More recently, high-rise construction has taken center stage, with 8,176 units built since 2018, 73% in projects of 30-plus stories.”

While DTLA’s growth through these periods has been impressive, Griffin said it is just the beginning. The recently approved DTLA 2040 Community Plan Update envisions adding up to 100,000 housing units, which would increase the population to almost 250,000. 

This would be facilitated primarily through rezoning that both expands the areas in which residential can be developed by right and increases maximum floor area ratios, allowing for greater density in exchange for investments in affordable housing, open space and other community facilities. The plan also expands the range of properties eligible for adaptive reuse and eliminates mandatory parking requirements. 

While the DTLA 2040 plan supports significant growth overall, it also seeks to reinforce the diversity of downtown neighborhoods, Griffin said. 

Different communities with distinct features appeal to different segments of the market, which is reflected in the various types of residential projects developed in each neighborhood and how they are integrated into the fabric of the community. 

Griffin said downtown demographics provide a vivid portrait of those who gravitate to living in a dynamic urban environment.

“Downtowners are younger than the broader LA region, with the share of residents 18 to 34 being 41% higher,” he said. “Sixty-three percent of them have postsecondary education, which is also higher than for the region.”

Griffin said that another unique identifier of downtown residents is reliance on alternate modes of transportation, with 44% choosing to walk, bike, take transit or work from home. These and other characteristics and behaviors help identify who wants to live in DTLA and why. 

Downtown Los Angeles is a mix of people and places, past and present, community and culture. In DTLA, that mix encompasses a wide range of building types, neighborhoods and demographics. 

Griffin said most importantly, it also includes the largest concentration of jobs and office space in the Southern California region.

“Downtown Los Angeles features one of the most prominent collections of cultural institutions in the nation, world-class sports and entertainment venues, and a critically acclaimed dining and nightlife scene,” he said. “All of which combines to make DTLA a very desirable place to live, and thus a very compelling place to develop as well.”

This article was produced in collaboration between Studio B and the Downtown Center Business Improvement District. Bisnow news staff was not involved in the production of this content.

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