Investor Blames Bureaucracy for Stalled L.A. Housing
Mitch Roschelle says regulatory hurdles, not financing, slowed an affordable housing project in Los Angeles under California's new housing law.
Updated on Nov. 10, 2026 in Residential
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Mitch Roschelle, a founding partner of Macro Trends Advisors, criticized California's regulatory obstacles after a company he invested in sought to build affordable housing in Los Angeles. The project aimed to use a state law signed by Gov. Gavin Newsom that allows additional units on certain properties without rezoning.
Why it matters
Allowing more units on a property does not guarantee homes will be built, because builders still face regulatory hurdles before construction can begin. The episode highlights the gap between state housing legislation and on-the-ground construction in California.
The assessment comes from a single investor interview rather than a formal dataset. Specific approval timelines and the number of affordable units planned were not disclosed.
The players
Mitch Roschelle
Mitch Roschelle is a founding partner of Macro Trends Advisors and an investor who has commented publicly on housing policy and regulation.
Gavin Newsom
Gavin Newsom is the Governor of California, whose signed legislation allows additional housing units on certain properties without rezoning.
The details
Roschelle attributes the construction difficulty in Los Angeles to bureaucracy, including decisions made by unelected officials. The affordable housing effort sought to use Newsom-signed legislation permitting extra units without rezoning, but the company still faced obstacles before building could start.
Timeline
Nov. 10, 2026: Roschelle's comments were published in a Varney & Co. interview.
Policy Gap
The story measures California's Newsom-signed rezoning-free unit law against real construction outcomes in Los Angeles. It shows that legislative permission for more units has not automatically produced new affordable homes.
Prospective buyers and renters in California should understand that a housing law permitting extra units does not guarantee new homes nearby. Project timelines may depend on local approvals that remain uncertain.
The takeaway
Housing supply depends on both permission and approval; a law allowing more units is only the first step toward new homes. Readers tracking affordability should watch local approval outcomes, not just statewide legislation.
Further reading
For more on housing supply and approvals, explore California residential real estate coverage.
Live Poll
Do you think it is getting harder to build affordable housing in your area?
