LA launches infill housing initiative: 12 city lots to be made available for development

The Los Angeles Housing Department has announced it will issue a Request for Qualifications (RFQ) inviting developers to build housing on 12 small city-owned lots under the new “Small Lots, Big Impacts” program—targeting under-utilized city parcels to accelerate infill development. (Urbanize LA, 2025)

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Program overview

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The initiative focusses on city-owned parcels that each are less than a quarter-acre, already zoned residential, and currently under-utilized. (Urbanize LA, 2025) In a motion introducing the RFQ, Councilmember Nithya Raman noted that the city “continues to face a severe housing shortage… one innovative solution … is the development of its large inventory of City-owned small sites.”

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Moreover, research from cityLAB UCLA shows there are thousands of under-utilized city and private lots in Los Angeles—less than ¼-acre in size—that could theoretically yield tens of thousands of new homes if developed. (cityLAB UCLA, 2025)

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Why this could matter

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In a housing market where new production has lagged demand for years, this program offers a dual benefit: unlocking latent capacity in the city’s land inventory, and potentially lowering barriers to entry for smaller-scale developers or first-time homeowners. Because these are smaller infill sites in existing neighborhoods, they may avoid some of the larger entitlement and infrastructure hurdles typical of extensive redevelopment projects—a point emphasized in cityLAB’s analysis.

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By leveraging city-owned land and pushing for “gentle density,” Los Angeles is signaling that infill solutions may play a key role in addressing housing affordability and neighborhood integration.

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Timeline & trends

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• October 2025: The RFQ for the 12 city-owned small lots is publicly announced.  
• Late 2025 into 2026: The Los Angeles Housing Department expects to review proposals from selected developer teams and begin site disposition and pre-development phases.
• Trend to watch: Research by cityLAB suggests that if many of the city’s small under-utilized parcels are developed, the cumulative impact could add tens of thousands of units across the region.

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Quick Tip: If you’re a developer, investor or housing advocate in Los Angeles, keep an eye on this RFQ and consider how small parcels might offer lower land cost and fewer large-scale entitlement hurdles. These sites can provide promising opportunities for starter homes, moderate-income housing, or small-scale infill developments.

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Xavier Rodriguez is the CEO of ADU Geeks, San Diego’s leading ADU consulting and project management firm. In 2024, the company was ranked No. 1 on the San Diego Business Journal’s Fastest Growing Private Companies list in the Small Business category, achieving 594.3% revenue growth.