You'd be surprised at how many developers in LA build projects that don't pencil. Also, of the 7,919 multifamily units permitted in LA in 2024, 49% were deed-restricted, so "overwhelming majority market-rate" is not an accurate statement
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It pencils in their heart and mind…whatever, the units will mostly get built.
aug 20, 2025, 2:28 am • 11 1 • view
I offered to buy a vacant lot for 60k. Owner said 175k contingent on variances. Or 125k for immediate cash close. At 175k, my net profit would be $0. Everyone selling land in Long Island assumes house prices will go up 10% again next year and thats where the builder's profit should come from.
aug 20, 2025, 3:33 am • 1 0 • view
And it is the overwhelming majority of units, because that was only about half the units permitted – there was a roughly similar amount of single-family, very small multi, and ADUs, which are ~100% market
aug 20, 2025, 2:41 am • 2 0 • view
But the entire context of this discussion is multifamily buildings. No one is claiming that ADUs aren’t penciling.
aug 20, 2025, 3:40 am • 0 0 • view
ADUs sadly don't pencil anymore in Denver
aug 20, 2025, 3:52 am • 1 0 • view