Daniel is one of LA's most competent and thoughtful apartment developer's and his observation is on the money.

Adding to this it is unfortunately the case that Measure ULA in LA and Measure GS in Santa Monica remain in place and will continue to prohibit new apartment development from occurring in these two cities.  

Everyone is focused on "cutting the red tape".  While this of course is important it is not sufficient for rental housing development to occur.  

Cutting red tape doesn't improve the complete lack of financial feasibility for new apartment projects caused by LA's Measure ULA and SM's Measure GS.