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Los Angeles neighborhood considers vacancy fee as empty homes, storefronts strain housing market

At the center of the proposal is the rising cost of living.

Several "For Rent" signs are displayed near a fence in a residential area.

Photo Credit: iStock

In a neighborhood where high housing demand collides with empty homes and shuttered storefronts, Venice officials are weighing whether leaving property vacant should come with a cost.

Venice's neighborhood council is preparing to consider a proposal to explore charging a vacancy fee on residential and commercial properties that sit unused for more than six months of the year.

Here's what to know

Board members are expected to take up the item during an August meeting, Yo! Venice reported.

Backed by the council's Homelessness Committee, the outlet reported that the motion would ask Council District 11 Councilmember Traci Park and the Los Angeles Housing Department to have the City Attorney review whether a Venice-only vacancy fee is legally and practically workable.

Under the proposal, any revenue from a future fee would be directed to temporary housing, rental assistance for low-income Venice families, and local homelessness programs.

The motion ties the proposal to two concerns: increasing vacancies in West Los Angeles and Venice Beach despite strong housing demand, and empty storefronts along corridors such as Abbot Kinney Boulevard, Rose Avenue, and the Venice Boardwalk that it says affect local commerce and neighborhood safety.

More background

At the center of the proposal is the rising cost of living. When habitable homes sit unused in a market with intense demand, competition for available units stays steep. A vacancy fee is being proposed to encourage owners to put empty properties back into circulation rather than keeping them off the market.

Commercial vacancies are part of the case as well. The motion argues that storefronts left empty for extended periods can affect business activity and make busy corridors feel less lively or secure, especially in an area that depends heavily on foot traffic.

To support the idea, the motion points to vacancy-fee programs in Oakland, San Francisco, and Berkeley, along with a City Administrative Officer directive calling for evaluation of a broader city vacancy tax, Yo! Venice reported.

If the fee goes through, it could encourage landlords to rent out spaces at lower rates, inviting more affordable options into the market. 

Whether Venice ultimately adopts a fee or not, the debate reflects broader pressure facing Los Angeles: how to respond when empty properties coexist with a housing crunch and rising everyday costs for the people who live there.

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