The demand is there: https://la.urbanize.city/post/plan-skyline-altering-tower-ab...

The point is that the vast majority of budgetary issues in LA could be solved by just legalizing, and streamlining the production of something as simple as three-story row housing like the kind that's normal in San Francisco (which has a surprisingly good long-term outlook despite their current budget woes).

It's not rocket science here. If you make it easy to build housing, the industry grow to meet demand. If you make it difficult, it will be dominated by a handful of major players who can navigate the process.

Plenty of labor and contractors other places in the US that could be brought in if someone was willing to offer stable work and pay. Even with the out-of-town bonus, many midwestern contractors and laborers would come out to near the same cost as locals because they were already making a fraction the wage out in the midwest.

But non-union construction is known to be unstable even outside construction's general boom-bust cycles and nobody is going to travel 1500 miles away without a contract guaranteeing they will have work/pay past the first 2 weeks. Too many workers have gotten burned being given great offers to travel for work only to get screwed over before they can recuperate their costs. Hell our own President is famous for screwing over construction companies and people just accept it as normal for the industry.