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Beyond economic factors, regulatory environment complexities are also a significant deterrent for residents and property owners alike. An anecdote reveals a homeowner's frustration with California's stringent and bureaucratic housing policies. The owner owns property in Los Angeles and wishes to convert single-family homes into higher-density apartment units—a move that could increase profitability and ease housing shortages. However, regulatory red tape, lengthy approval processes, and high compliance costs make these projects impractical. As a result, many property owners, discouraged by the challenges and expenses, opt to hold onto their properties rather than pursue development.