Wealthy West Coast city in danger of becoming 'the next Detroit'

Daily Mail​

21-04-2025

A glamorous city known for sprawling mansions, boutique shops and glamor is at risk of becoming 'the next Detroit,' according to experts.
Los Angeles is being rocked by an exodus of big budget TV and film production companies — long considered the backbone of the local economy.
Detroit was once the center of America's auto production, but fell into decline when factories began to shut, triggering a major housing crisis.
Now, some fear LA faces a similar threat. FilmLA reports that on-location production in the city fell by 22.4 percent in the first quarter of 2025 compared to the same time last year.
High state taxes are a major factor pushing studios and production companies to shoot elsewhere.
Industry leaders are pushing California to extend an entertainment production tax credit to 35 percent of spending in a bid to stem the flood of projects leaving town, Realtor.com reported.
The issue came to a head at a city town hall on Monday, where advocates pushed for broader eligibility and increased incentives.
'This is not hyperbole to say that if we don't act, the California film and TV industry will become the next Detroit auto,' producer Noelle Stehman told the event according to The Hollywood Reporter.
Detroit was once a thriving economy thanks to General Motors, Ford and Chrysler all having their manufacturing headquarters there.
However, when the plants moved on in the 1960s, the city was left decimated.
The loss of jobs, coupled with the mortgage crisis, drove millions from their homes in the 2000s as their properties were left worthless.
Less than two decades ago, one in five houses stood empty in the city, with foreclosures mounting and properties on deserted streets being sold for $1.
One of the main issues is Tinsel Town's spiraling housing costs that are pricing out middle class production workers, according to Senator Ben Allen.
The median income in the city is $95,625, yet the median home sale price in 2025 is almost 10 times that at $965,300, according to Realtor.com data.
'The studios don't care where they do the work. They'll do it anywhere,' he said at the city town hall.
'They're still producing shows. What a lot of our colleagues simply don't understand is that this is a middle-class problem.
'The studio heads are going to bed in Bel-Air no matter what' he added.
Larger and more widely available tax cuts for the entertainment industry have received support from Governor Gavin Newsom.
Newsom promised back in October to increase film incentives from the current cap of $330 million to $750 million.
SAG-AFTRA members on strike during Halloween on October 31, 2023
Newsom's proposed SB630 bill will be heard by lawmakers at the end of April.
The film and TV exodus is more bad news for Hollywood following 2023's SAG-AFTRA strikes and the devastating wildfires that ripped through the city causing billions of dollars worth of damage earlier this year.
'Loss of filming opportunity in no way compares to the cost of the Eaton and Palisades Fires in terms of loss of life, resident displacement and property damage,' FilmLA VP of Integrated Communications Philip Sokoloski said in a statement.
'The fires sent many productions scrambling to reschedule shoots and displaced hundreds of industry workers from their homes. But their impact on local filming levels appears to have been temporary.'
California has already seen the recent loss of a host of glamorous A-listers including Eva Longoria, Richard Gere and Matthew McConaughey.