The London Group Realty Advisors (“LGRA”) has completed an analysis of the property tax revenue potential derived from eliminating minimum lot size requirements for single-family zones (R1) within the City of Los Angeles. This analysis augments LMA’s companion study which determined that by eliminating the City’s 80-year-old minimum single-family lot size requirement of 5,000 square feet, it would open the door to High Density Family Housing (“HDF”) at an average 37% cost reduction in the price of replacement homes.
This report highlights the financial benefits which local governments, including the City of Los Angeles, the County of Los Angeles, and school districts, would realize if the City implemented this policy change. Eliminating minimum lot size requirements for single-family zones in the city deserves serious consideration by the mayor and city council members currently wrestling with a $97 million budget deficit for Fiscal Year 2026-27.