By Richard Lee Abrams : citywatchla – excerpt

THE VIEW FROM HERE – No. The driving force behind Los Angeles excessive densification is Wall Street’s monetization of real estate based on the meme of the highest and best use. That means whatever use of a piece of land makes the greatest income for the owner is incontrovertibly the best and most morally righteous use of the land. Human beings will believe anything no matter how absurd as long as it is repeated enough. Beliefs regulate behavior and a society which lacks common set of beliefs cannot function. Perhaps, the wisest line from Monty Python is, “No one expects the Spanish Inquisition.” There comes a time when a belief system turns upon and devours itself. When Los Angeles was open space, monetization of land for residential use was the best and highest use. The reason is that it resulted in a significantly enhanced quality of life for the average person.

When Los Angeles reached a particular density, the highest and best meme became a prescription for decline. As is the case with much of life, there was no single moment when Los Angeles should have posted No Vacancy Signs at the city limits, but there are ratios between various factors which signal when an urban area is reaching its maximum density per square mile. People being what they are, the public does not notice the problem until after they have significantly surpassed the maximum number of people per square mile…

Monetization of Rental Properties is Easy

It’s easy to monetize the value of land according to how much rent it will bring the developer. A single-family home will usually bring a one-time payment when a family purchases the home, at which point it ceases to generate income. A 24-unit apartment house on the same size lot is worth a lot more to the developers because it will generate income for the new owner…(more)