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Hollywood Struggles to Fill Empty L.A. Soundstages as Productions Flee California

March 20, 2026  ·
  Trevor Denning
The Hollywood Sign

The Hollywood Sign - Photo Credit: Thomas Wolf, www.foto-tw.de, CC BY-SA 3.0 , via Wikimedia Commons

According to new data, Hollywood soundstages are seeing unusually low occupancy. A survey from local film office FilmLA found that just 62% were in use during the first half of 2025, down from the 63% occupancy reported in 2024—a total The Hollywood Reporter called “anemic.” The city reportedly has 8.3 million square feet in soundstages, yet much of it remains empty.

L.A. soundstages have long been a core engine of Hollywood production, and this underuse doesn’t just affect actors. The ripple reaches grips, electricians, editors, and even catering and local businesses. Additionally, it highlights how closely the city’s economy is tied to on-set activity. Industry analysts cite slowed production, tighter budgets, and growing competition from other filming hubs as key factors behind the decline.

Historic Occupancy vs. Today

The decline stands in stark contrast to recent years. From 2016 through 2022, soundstages participating in FilmLA’s annual survey reported average occupancy rates of 90% or higher. This year, 17 studios—including major players like Walt Disney Studios and Warner Bros. Burbank, as well as independent operators—responded, representing roughly 75% of Hollywood’s total soundstage square footage.

Tron Ares Disney Logo

The Disney logo with a Tron Ares Overlay – YouTube, Disney

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The Hollywood Reporter notes that these lower occupancy levels could pose a challenge for newly built stages, including Cinespace Studios and East End Studios. Meanwhile, another reportedly massive soundstage is under construction for Echelon Studios, highlighting the stakes for studios hoping to attract future productions.

Project and Shoot-Day Trends

For the first time, the report tracked both the number of projects filmed and total shoot days. It found that projects shot in L.A. rose slightly, from 1,225 in 2023 to 1,287 in 2024—a 5% increase—but this followed a year disrupted by the dual WGA and SAG-AFTRA strikes. Despite more projects, total shoot days fell 8%, dropping from 8,671 to 7,940. FilmLA attributes much of this decline to scripted television, which saw a 23% reduction in shoot days.

The Disney's Hollywood Studios Archway with Mickey on it

An older version of The Disney’s Hollywood Studios Archway – Photo Credit: Follow The Bradley’s Fun

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Industry observers note that the strikes, combined with cost-cutting by streamers, created a ripple effect contributing to underused soundstages. At the same time, competitive tax incentives in states like Georgia, New Mexico, and international locations have lured productions away from California, meaning much of the slowdown reflects a geographic shift rather than an overall drop in production.

Policy Responses and Future Outlook

California is taking steps to keep Hollywood competitive. Last year, the state expanded its film and television tax credit program. In May 2025, L.A. Mayor Karen Bass signed an executive order reducing the number of city staff required on-site for filming. She noted that the change “will make it far easier to film in Los Angeles movies, television shows and commercials.”

L.A. Mayor Karen Bass at a podium

L.A. Mayor Karen Bass at the 2026 State of the City Address – KTLA 5, YouTube

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Even with these incentives, Hollywood is still facing a highly competitive market. The city’s iconic soundstages, once reliably full, now sit partially empty, a reminder that studios must compete on cost, convenience, and infrastructure to maintain L.A.’s production dominance. FilmLA calls the city the “world leader” in availability. Yet, with productions increasingly moving to other states and countries for tax incentives and lower costs, even L.A.’s abundant stages are not guaranteed to stay in constant use.

For nearly 100 years, Hollywood has been the world leader in film production. As a “company town,” some residents are comparing the empty soundstages to a coal mine shutting down. Whether or not the city can be revitalized remains a question that weighs heavily on the minds of many.

Do you think Hollywood can fill its empty soundstages? Let us know in the comments!

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Author: Trevor Denning
Trevor Denning’s work has appeared in The Banner, Upstream Reviews, and The Daily Caller, while his fiction is included in several anthologies from independent presses. A graduate of Cornerstone University in Grand Rapids, Mich., he currently resides in the palm of Michigan’s mitten. Most days you’ll find him at home, working out in his basement gym, cooking, and doting on his cat. You can follow him on X, Criticless, and YouTube at @BookstorThor