In the heart of Los Angeles’ Koreatown, just blocks from bustling restaurants and high-rise apartments, a sprawling homeless encampment has taken root on an otherwise vacant lot. But this is no ordinary collection of tents. According to neighbors, and aerial video footage aired by ABC7 [1], the encampment now includes a makeshift tennis court, a small vegetable garden, and even a barbecue pit.
“It’s a city in there,” said Max Smith, who lives in a nearby apartment complex. “It’s crazy. It’s crazy.”
For some, the unusual setup is a startling example of resilience and resourcefulness. For others, it’s a glaring reminder of Los Angeles’ inability to get its homelessness crisis under control. And for investors, homeowners and renters alike, it raises uncomfortable questions about how encampments affect safety, property values, and the long-term financial health of the city.
Local residents say the encampment is more than just an eyesore. Sangmin Lee, who contacted ABC7 about the site, said he’s seen people rig an illegal power connection by ripping open a streetlight and running an extension cord into the lot.
“Thank God it hasn’t rained in a while,” Lee said. “It’s a fire hazard … they run the cable across the street, and it’s a trip hazard for everyone.”
Others are more concerned about safety. A young woman told reporters she no longer feels comfortable walking her dog near the block. An ABC7 news crew said they were threatened when they tried to film on site. But residents say what frustrates them most is the lack of clear action from city officials.
“The reason why people are sleeping here is because you leaders are sleeping on not taking initiative,” said neighbor Daniel King.
Part of the problem, according to Los Angeles City Councilmember Katy Yaroslavsky, is that the encampment sits on private property.
The lot is owned by a limited liability company registered in Delaware. Because of ownership rules and the layers of city bureaucracy, clearing the site is far more complicated than if it were public land.
“It’s the city at its worst,” Yaroslavsky admitted in an interview. “Not being able to get out of its own way.”
The city’s Department of Building and Safety has issued an ‘order to comply’ to the property owner, demanding they address security, trash and graffiti. Meanwhile, the property owner has reportedly agreed to post ‘No Trespassing’ signs, a move that would allow the LAPD to intervene.
Still, progress has been slow, and many locals feel they’re left to live with the consequences.
Read more: Rich, young Americans are ditching stocks — here are the alternative assets they’re banking on instead
Homelessness has been a stubborn issue in Los Angeles for years, and visible encampments like the one in Koreatown can have ripple effects on property values.
A 2024 study showed that 58% of residential properties sold in Los Angeles between March 2016 and August 2022 had homeless encampments within 0.3 miles and changed hands on average for 3.14% less than they otherwise would have, a total realized loss of over $2.5 billion across more than 70,000 properties [2].
Furthermore, landlords may struggle to attract tenants willing to pay market-rate rents when crime and safety concerns dominate the neighborhood [3].
That’s particularly troubling for an area like Koreatown, where rents have already soared and many residents live in multi-family buildings purchased by investors banking on rising property values.
For homeowners, the impact is twofold: a potential dip in property value, and higher taxes as the city spends more on cleanup, policing, and outreach efforts. For renters, it could mean landlords pass along those costs through rent hikes, despite already record-high housing costs across Los Angeles.
While some residents are quick to demand immediate removal of encampments, advocates warn that the situation highlights the city’s lack of affordable housing and resources for those on the streets. Mayor Karen Bass’ office said outreach teams have visited the Koreatown lot in recent days in hopes of moving some people indoors. But with more than 45,000 unhoused people in Los Angeles, short-term efforts often feel like little more than band-aids.
The Koreatown encampment, with its improvised tennis court and garden, illustrates both the ingenuity of people trying to survive and the staggering dysfunction of the systems meant to support them. For residents, the message is clear: even in one of America’s most expensive cities, the line between thriving and struggling has never felt thinner.
For homeowners: Research from housing economists has found that properties located within view of large homeless encampments often sell at a discount compared to similar homes in unaffected areas. If you’re planning to sell, buyers may factor in safety concerns and neighborhood reputation when making offers.
For landlords: Encampments can make it harder to attract tenants at full market rent, especially if crime or fire hazards are involved. That can hurt your long-term return on investment and may increase vacancies, a costly drag on cash flow.
For renters: Safety concerns can drive up insurance costs for property owners, which may trickle down to tenants in the form of higher rent. And if the neighborhood reputation suffers, renters may feel stuck paying high rents in an area where their quality of life declines.
For investors: Local governments often spend millions responding to encampments through cleanups, security, and outreach. That money comes from the same tax base that supports infrastructure and services, meaning your property taxes could rise even as property values come under pressure.
Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.
[1]. ABC7. Sprawling LA homeless encampment has tennis court, garden, BBQ pit [2]. U.S. Department of Housing and Urban Development. Exploring Homelessness Among People Living in Encampments and Associated Cost [3]. U.S. Department of Housing and Urban Development. City Approaches to Encampments and What They Cos
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
