New luxury apartments don't price out low-income people: study
Low-income people were not priced out when market-rate homes were built nearby. In fact, having those fancy new neighbors helped to decrease their own rent burden.
Los Angeles – actually the whole state of California – is in the middle of a housing crisis, with too few homes to meet the demands of people wanting to live here.
Communities are trying to confront this problem by pressing for the development of affordable homes and the creation of housing subsidies to help low-income families.
That tension is playing in downtown L.A., for example, where the construction boom of luxury high-rises has angered lower-income residents who want more affordable housing.
But a new report by the state found something surprising: in areas where market-rate and luxury homes were built, low-income people were not priced out. In fact, having those fancy new neighbors helped to decrease their own rent burden.
Housing expert Raphael Bostic, professor of governance and public enterprise at USC, joins Take Two to explain.