In the last few months, fear has become a more powerful force in Los Angeles housing than inflation or interest rates.
It is driving tenants out of buildings.
It is silencing leasing offices.
It is shaking trust between landlords, tenants, and communities.
This is not just about policy or politics. It is a market disruption.
On July 7, 2025, ICE agents entered MacArthur Park in a show of force.
There were armored vehicles.
Officers on horseback.
Tactical gear.
Overhead helicopters.
To some, it looked like enforcement.
To others, it looked like a photo opportunity.
To those of us who work in housing every day, it looked like something else entirely.
It looked like risk.
It looked like a warning.
And it was not the first.
At a glance, Los Angeles rental data seems stable.
The vacancy rate is hovering around 4.9 percent
Rent growth is modest at 0.6 percent
Leasing activity is still keeping up with new inventory
But behind those numbers, something is shifting.
At Coastline Equity, we have seen leasing inquiries drop by nearly 50 percent in certain buildings.
Tenants are disappearing.
Prospective residents are not applying.
Families are breaking leases and leaving quietly.
This is not a seasonal trend.
It is fear showing up in real time.
Fear in housing does not arrive with press releases. It shows up in quiet vacancies and unanswered maintenance requests.
It looks like this:
Tenants stop opening their doors
Residents stay home from work
Rent payments slow or stop
Applicants vanish before signing
The market feels flat on paper.
But in practice, buildings feel abandoned.
This is not a political opinion.
It is operational reality.
And if we do not recognize it, we will all be caught off guard when the effects show up in cash flow and property value.
At Coastline Equity, we do not just operate from policies.
We operate from principles.
These five principles form the backbone of how we lead in moments like this.
They are also the foundation of my book, Property Management Excellence.
We do not assume that silence means safety. We check in with residents, with our team, and with ourselves.
We do not share tenant data unnecessarily. We do not cooperate with unconstitutional enforcement. We hold the line on what is legal and what is right.
Fear drives out trust. And when trust breaks, asset performance follows. Stability and stewardship must go hand in hand.
Everyone deserves a safe and respectful place to live and work. We protect that right for every resident we serve, regardless of background or status.
Your reputation is not built during easy times. It is built in pressure. We lead with that awareness in every interaction.
These values are not abstract. They are tactical. They help us keep buildings full, staff grounded, and communities resilient.
The headlines will fade. The fear will not.
This is not a moment to wait and see. This is a leadership test.
Here are five specific steps property professionals can take today:
Communicate directly with tenants
Let them know their information is private and protected. Make space for questions and concerns.
Audit your leasing and application process
If you are collecting more data than necessary, stop. Minimize exposure and build trust.
Train your staff on tenant rights
Make sure your managers and maintenance teams know the legal boundaries of ICE activity and how to respond with professionalism and clarity.
Partner with legal and nonprofit organizations
Work with community leaders who offer housing aid, legal assistance, or emergency response for tenants.
Use your platform for good
Speak up in support of policies that protect tenants, stabilize neighborhoods, and support ethical housing practices.
These are not political statements. They are operational necessities for anyone serious about protecting long-term value and legacy.
If fear is being used as a strategy, then trust must become our answer.
And trust is built through daily action.
If you lead a team, a building, or a portfolio, ask yourself:
Are you protecting your people?
Or are you waiting to see what happens next?
The future of your business, your brand, and your reputation will be shaped by how you respond to this moment.
Leadership in property management does not start in crisis.
It shows up through clarity, courage, and consistency.
Now is the moment to decide what kind of leader you are.
Anthony A. Luna is the CEO of Coastline Equity, a property management and advisory firm based in Southern California. He is the author of Property Management Excellence: A Values-Based Approach to Real Estate and Property Investing and host of The Owner Mindset podcast. His work focuses on building trust-centered portfolios, ethical leadership, and long-term real estate performance.