North Hollywood High School opened with 800 students, graduating its first class in 1928. For the first time, students did not have to travel by Red Car to either Hollywood or Van Nuys. The Board of Education was asked to employ teachers who were residents of North Hollywood. The first telephone exchange was established, with 169 subscribers. The business community included Blue Bird Café, Rathbun's Department store, Pollard-Ho Chevrolet Company and Security National Bank, which replaced the Bank of Lankershim. The community received a new fire station and 335 new fire hydrants. The '20s saw the Kiwanis, Rotary and Optimists clubs established. Fox West Coast Theatres came to town with the El Portal. The theme of the '20s was "Lankershim is Progressive and Impressive."

Population climbed to about 20,000 by the time of the 1929 Stock Market Crash and Great Depression. Every element of the area was touched. Carl Laemmle and his son had to sell their studio to pay off debts. During the Depression years of the 1930's, the Chamber was the unemployment relief headquarters for the Valley. The El Portal Theatre was used for benefit shows for the unemployed. The Chamber served as relief headquarters for the victims of the Great Flood of 1938 when the Los Angeles River could not contain a heavy downpour and its banks overflowed. Property damage was $40 million, and 49 deaths were attributed to the flooding.