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SB-9 / "ADUs Everywhere!" passed last year at the state level effectively makes all property legally 2-3 unit.

Some people really want to live in lower-density suburban environments, though. I can't say I blame them, because the absolutely overwhelming majority of apartments/condos are strictly inferior in a number of ways. Sound transparency through walls / floors alone is a significant issue. Smells and ventilation too. And it's nice to have outside space you have access to / control over. Sure, units could be built to standards that mitigate those problems... but that costs money.

> It would be illegal to make the buildings they have under our zoning code and parking mandates!

More "costly" than illegal, if the LA neighborhoods I'm familiar with are any indication -- there's plenty of 3 story urban buildings with parking underneath (including one I recently moved out of), but of course that's a whole "floor" that could have been housing units, and the owner wants to recoup that with higher rents. $4250/mo for 2 bd last I checked.