Los Angeles is in the grip of a housing crisis, and Measure ULA is at the center of this devastating downturn. This “mansion tax,” targeting properties valued over $5.3 million, has virtually paralyzed new apartment construction.
Passed by voters in 2022 under the guise of funding low-income housing, Measure ULA has been a colossal failure. Instead of generating revenue, this misguided initiative has slashed anticipated returns by a staggering two-thirds. As sellers pulled properties off the market to avoid the tax, luxury home sales dropped by 40%. Even commercial real estate is feeling the pinch with similar declines. This is not just a minor setback; it’s a full-blown crisis.
The effects of Measure ULA extend beyond immediate sales declines. Wait times for rebuilding after disasters like the Palisades Fire have dragged on as investment in new real estate projects dwindles. The troubled environment has investors on high alert, wreaking havoc on the market and making it increasingly difficult for Angelenos to find affordable housing.
In the three months ending September, under 19,000 apartments were under construction — 30% fewer than just three years prior. Investors are rightfully worried about L.A.’s reckless policies and the uncertainty they create. Public sentiment is shifting as the reality of Measure ULA sinks in; it’s making housing more expensive, not less, by choking off new supply.
Yet it’s not just Measure ULA causing this turmoil. Additional factors include tariffs on building materials and tightened immigration policies that threaten to reduce the labor force, driving construction costs even higher. These elements are working together to forge an increasingly hostile environment for housing development.
Meanwhile, the Los Angeles City Council has squandered Measure ULA funds on a mishmash of poorly conceived programs with little to show for it. A significant chunk has been wasted on administrative costs, highlighting the incompetence of city officials. Even L.A. Mayor Karen Bass, who briefly entertained the idea of repealing this failed measure, has given up in the face of legislative apathy.
It’s clear: Measure ULA is a blight on Los Angeles that must be addressed. Angelenos deserve real solutions, not half-measures and failed experiments. The city needs leadership willing to take decisive action to restore sanity to its housing market.
