The Market Is Not Cooling. It Is Freezing in Place.
In several properties we manage across Southern California, leasing traffic has dropped by nearly 50 percent year over year.
This change is not driven by pricing, inventory, or seasonal shifts.
It is driven by fear.
ICE activity across Los Angeles has created a chilling effect. Not just in public parks or commercial corridors, but inside our buildings and among our residents.
When trust collapses, buildings do not just go quiet. They underperform.
And when property professionals cannot see the cause, they risk making the wrong decisions at the worst possible time.
The Impact of Enforcement on Housing Behavior
The federal operation at MacArthur Park drew national attention. Helicopters, tactical vehicles, and heavily armed officers flooded a dense urban community in broad daylight.
But that was not the beginning. It was simply the most visible signal of an enforcement pattern that had already been affecting neighborhoods for months.
Since these actions began, we have seen tenants disappear mid-lease. Prospective renters have gone silent during the application process. Entire buildings have grown quiet, not due to economic strain, but because of uncertainty and fear.
These are not one-off incidents. This is a pattern that impacts every part of the leasing cycle.
Fear Affects Every Phase of the Leasing Funnel
When fear enters a community, it shows up in subtle but measurable ways.
Prospects stop responding. Applications are left incomplete. Families cancel move-ins. Renewals go unsigned. Residents avoid contact with office staff. Maintenance issues go unresolved.
This is not a marketing challenge. It is a breakdown in trust.
And trust cannot be restored with incentives or automation.
It must be rebuilt through leadership.
How We Lead at Coastline Equity
At Coastline Equity, we operate from a values-based framework.
These five principles are at the core of everything we do. They shape our decisions, especially when uncertainty rises.
Listening and Communication
We do not assume that silence means stability. We ask better questions. We stay present with our teams and our tenants.
Ethics and Integrity in All We Do
We never share tenant data without legal cause. We do not assist with any enforcement action that undermines civil rights. We always protect the people we house.
Owner Mindset
Fear leads to vacancies. Vacancies impact returns. We see trust and occupancy as two sides of the same coin.
Quality of Life
We offer more than space. We offer peace, security, and clarity. Every resident deserves that, regardless of income, background, or status.
Building a Legacy
We lead with our reputation in mind. Every moment is a choice to build credibility or lose it. Legacy is not what we say. It is what we practice.
What Property Professionals Can Do Now
This is a leadership moment. If you own, manage, or operate rental property in Los Angeles, now is the time to act intentionally.
Here are five steps to take immediately.
- Review your application and screening policies: Only request documentation that is necessary. Eliminate unnecessary barriers that may prevent qualified renters from applying.
- Train your team: Make sure every staff member knows how to respond to inquiries from law enforcement. Equip them with resources and confidence.
- Communicate with your residents and tenants: A short message expressing your company’s values and privacy standards can go a long way toward reducing fear.
- Partner with local nonprofits: Work with community organizations offering legal aid, rental support, or crisis response. Do not try to solve this alone.
- Audit your messaging and marketing materials: Make sure your brand voice reflects safety, inclusivity, and reliability. Build campaigns that reflect reality, not just sales goals.
These actions are not political. They are operational.
They are not about choosing sides. They are about reducing risk, supporting people, and protecting your assets.
The Choice Is Ours
Fear is now a factor in housing performance.
It will not show up as a line item. It will show up in vacancy. In delinquency. In staff burnout. In resident turnover.
But there is good news. We can respond.
As property professionals, we do not get to control what happens in Washington. But we do control how we show up in our communities.
And right now, that matters more than ever.
Trust is not a soft concept. It is a strategic one.
It determines how well we navigate risk. It shapes the quality of our teams. It drives retention and reputation.
If we want to thrive in this moment, we cannot wait for permission.
We must lead.
About the Author
Anthony A. Luna is the CEO of Coastline Equity, a Southern California-based property management and advisory firm. He is the author of Property Management Excellence and the host of The Owner Mindset podcast.
His work focuses on values-based leadership, ethical real estate practices, and building lasting impact through housing.
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