Are Entitlements the Key to Unlocking More Homes?

At TurboPermit.co, we cut through red tape with tech-driven solutions to get projects approved faster. We’re sharing UCLA research published in 2023 that explore the source of that pain. While the trend is reducing or eliminating discretionary steps, builders tell us we can save them up to $100,000 for every week we shave off their time to entitlement approval. Let’s talk about how our platform can accelerate your next project!

457,000 Units by 2029? Not With 549-Day Approvals

The City of Los Angeles is grappling with one of the most severe housing shortages in the nation. With skyrocketing rents, a homelessness crisis that's ballooned by 61% in just five years, and ambitious state-mandated goals to build 457,000 new units by 2029, the stakes couldn't be higher. But as a 2023 report from UCLA's Ziman Center for Real Estate and CSUN reveals, the biggest roadblock isn't just zoning or funding, it's the painfully slow entitlement and approval process that's stifling development.

In "Tackling the Housing Crisis: Streamlining to Increase Housing Production in Los Angeles," researchers Edward Kung and Stuart Gabriel dive deep into city data from over 2,600 multifamily projects permitted between 2010 and 2022. Their findings paint a stark picture of inefficiency in traditional permitting, where delays add years of uncertainty and balloon costs for developers.

The High Cost of Slow Approvals: Numbers That Tell the Story

Traditional permitting in LA is a marathon, not a sprint. The report shows that completed multifamily projects take an average of 549 days just for approvals—from the first entitlement or permit application to issuance by the Department of Building and Safety (DBS). Add in construction, and the total development time averages 1,413 days (nearly 4 years) per project, or a staggering 1,784 days per unit when weighted for larger developments.

But it's not just the length—it's the unpredictability that's killing progress. Variability in approval times accounts for 64% of the total variation in development timelines, with only 25% explainable by project characteristics like size or type. Discretionary reviews, such as those by the City Planning Commission or requiring Environmental Impact Reports (EIRs), pile on hundreds of extra days. For instance:

• Projects needing City Planning Commission review add 193 days to approvals.
• Site Plan Reviews tack on 106 days.
• EIRs balloon approvals by a whopping 504 days.

Mixed-income projects, which blend market-rate and affordable units, face even longer waits, exacerbating the affordability crunch. And don't forget utilities: LADWP power connections are the second-biggest bottleneck, with underground installations adding 245 days and overhead ones 140 days to overall timelines.

These delays aren't just frustrating—they're costly. Developers surveyed in the report cited "delayed approvals and changing plans after approval" as major issues, driving up expenses by tens of millions on large projects. One affordable housing developer estimated that schedule changes and community opposition added over 1.5 years and massive costs to their timeline.

Entitlement Takeaways: Discretionary Reviews Are the Problem

The report's core message? Entitlements—the process of getting city planners' formal go-ahead, are where the system breaks down. Not-by-right projects (those requiring discretionary approvals) spend 197 more days in review than by-right ones. This uncertainty discourages investment and slows the pipeline.

Key simulations highlight the potential impact:

• Reducing approval times by 25% would have pulled forward 10,054 additional completed units by late 2022, a 14.1% boost, without assuming any new starts.
• Factoring in incentives for new development (as estimated in related studies), that jumps to 18,049 units, a 25.2% increase.
• Making all projects by-right could have yielded 15,872 more units (21.7% gain), with most being market-rate but still easing overall supply pressures.

The salience analysis is eye-opening: Eliminating not-by-right requirements would save 48,085 unit-years in development time, far outpacing other factors. Developers and officials agree the process is "complex and fragmented," with poor coordination between agencies like DBS, Planning, and LADWP leading to errors, inconsistencies, and endless back-and-forth.

Wrapping Up: Time to Accelerate LA's Housing Future

LA's housing crisis demands bold action, and the research makes it clear: Streamlining entitlements isn't optional, it's essential. By cutting approval delays and embracing by-right reforms, it's possible to add tens of thousands of units. Traditional permitting's slow pace is holding the City back, but with smart policies and tools like TurboPermit, we can build faster, smarter, and more equitably.

‍Report accessible here: https://www.anderson.ucla.edu/sites/default/files/document/2023-05/2023-10WP-report.pdf