Business
Commentary: The immigration raids are crushing L.A.'s fire recovery and California's economy
The crew had just poured a concrete foundation on a vacant lot in Altadena when I pulled up the other day. Two workers were loading equipment onto trucks and a third was hosing the fresh cement that will sit under a new house.
I asked how things were going, and if there were any problems finding enough workers because of ongoing immigration raids.
“Oh, yeah,” said one worker, shaking his head. “Everybody’s worried.”
The other said that when fresh concrete is poured on a job this big, you need a crew of 10 or more, but that’s been hard to come by.
“We’re still working,” he said. “But as you can see, it’s just going very slowly.”
Eight months after thousands of homes were destroyed by wildfires, Altadena is still a ways off from any major rebuilding, and so is Pacific Palisades. But immigration raids have hammered the California economy, including the construction industry. And the U.S. Supreme Court’s ruling this week that green-lights racial profiling has raised new fears that “deportations will deplete the construction workforce,” as the UCLA Anderson Forecast warned us in March.
There was already a labor shortage in the construction industry, in which 25% to 40% of workers are immigrants, by various estimates. As deportations slow construction, and tariffs and trade wars make supplies scarcer and more expensive, the housing shortage becomes an even deeper crisis.
And it’s not just deportations that matter, but the threat of them, says Jerry Nickelsburg, senior economist at the Anderson Forecast. If undocumented people are afraid to show up to install drywall, Nickelsburg told me, it “means you finish homes much more slowly, and that means fewer people are employed.”
Now look, I’m no economist, but it seems to me that after President Trump promised the entire country we were headed for a “golden age” of American prosperity, it might not have been in his best interest to stifle the state with the largest economy in the nation.
Especially when many national economic indicators aren’t exactly rosy, when we have not seen the promised decrease in the price of groceries and consumer goods, and when the labor statistics were so embarrassing he fired the head of the Bureau of Labor Statistics and replaced her with another one, only to see more grim jobs numbers a month later.
I had just one economics class in college, but I don’t recall a section on the value of deporting construction workers, car washers, elder-care workers, housekeepers, nannies, gardeners and other people whose only crime — unlike the violent offenders we were allegedly going to round up — is a desire to show up for work.
Now here, let me give you my email address. It’s steve.lopez@latimes.com.
And why am I telling you that?
Because I know from experience that some of you are frothing, foaming and itching to reach out and tell me that illegal means illegal.
So go ahead and email me if you must, but here’s my response:
We’ve been living a lie for decades.
People come across the border because we want them to. We all but beg them to. And by we, I mean any number of industries — many of them led by conservatives and by Trump supporters — including agribusiness, and hospitality, and construction, and healthcare.
Why do you think so many employers avoid using the federal E-Verify system to weed out undocumented workers? Because they don’t want to admit that many of their employees are undocumented.
In Texas, Republican lawmakers can’t stop demonizing immigrants, and they can’t stop introducing bills by the dozens to mandate wider use of E-Verify. But the most recent one, like all the ones before it, just died.
Why?
Because the tough talk is a lie and there’s no longer any shame in hypocrisy. It’s a climate of corruption in which no one has the integrity to admit what’s clear — that the Texas economy is propped up in part by an undocumented workforce.
At least in California, six Republican lawmakers all but begged Trump in June to ease up on the raids, which were affecting business on farms and construction sites and in restaurants and hotels. Please do some honest work on immigration reform instead, they pleaded, so we can fill our labor needs in a more practical and humane way.
Makes sense, but politically, it doesn’t play as well as TV ads recruiting ICE commandos to storm the streets and arrest tamale vendors, even as the barbarians who ransacked the Capitol and beat up cops enjoy their time as presidentially pardoned patriots.
Small businesses, restaurants and mom and pops are being particularly hard hit, says Maria Salinas, chief executive of the Los Angeles Area Chamber of Commerce. Those who survived the pandemic were then kneecapped again by the raids.
With the Supreme Court ruling, Salinas told me, “I think there’s a lot of fear that this is going to come back harder than before.”
From a broader economic perspective, the mass deportations make no sense, especially when it’s clear that the vast majority of people targeted are not the violent criminals Trump keeps talking about.
Giovanni Peri, director of the UC Davis Global Migration Center, noted that we’re in the midst of a demographic transformation, much like that of Japan, which is dealing with the challenges of an aging population and restrictive immigration policies.
“We’ll lose almost a million working-age Americans every year in the next decade just because of aging,” Peri told me. “We will have a very large elderly population and that will demand a lot of services in … home healthcare [and other industries], but there will be fewer and fewer workers to do these types of jobs.”
Dowell Myers, a USC demographer, has been studying these trends for years.
“The numbers are simple and easy to read,” Myers said. Each year, the worker-to-retiree ratio decreases, and it will continue to do so. This means we’re headed for a critical shortage of working people who pay into Social Security and Medicare even as the number of retirees balloons.
If we truly wanted to stop immigration, Myers said, we should “send all ICE workers to the border. But if you take people who have been here 10 and 20 years and uproot them, there’s an extreme social cost and also an economic cost.”
At the Pasadena Home Depot, where day laborers still gather despite the risk of raids, three men held out hope for work. Two of them told me they have legal status. “But there’s very little work,” said Gavino Dominguez.
The third one, who said he’s undocumented, left to circle the parking lot and offer his services to contractors.
Umberto Andrade, a general contractor, was loading concrete and other supplies into his truck. He told me he lost one fearful employee for a week, and another for two weeks. They came back because they’re desperate and need to pay their bills.
“The housing shortage in California was already terrible before the fires, and now it’s 10 times worse,” said real estate agent Brock Harris, who represents a developer whose Altadena rebuilding project was temporarily slowed after a visit from ICE agents in June.
With building permits beginning to flow, Harris said, “for these guys to slow down or shut down job sites is more than infuriating. You’re going to see fewer people willing to start a project.”
Most people on a job site have legal status, Harris said, “but if shovels never hit the ground, the costs are being borne by everybody, and it’s slowing the rebuilding of L.A.”
Lots of bumps on the road to the golden age of prosperity.
steve.lopez@latimes.com
Business
Rent-hike ban to protect fire victims ends despite gouging concerns
A rule intended to prevent rent gouging in the wake of the Eaton and Palisades fires has lapsed in Los Angeles County, possibly exposing some renters to hikes.
The executive order that blocked rent increases was issued by Gov. Gavin Newsom amid the devastating wildfires last year. Under the order, landlords couldn’t increase rents by more than 10% above their prefire levels.
The rule, which was supposed to be temporary and was repeatedly extended, ended Friday after a vote to extend it again failed to garner enough votes. Supervisor Lindsey Horvath, whose district includes Pacific Palisades, sounded the alarm in a motion to extend price protections that failed to pass at the Board of Supervisors’ May 19 meeting.
“These price gouging protections continue to be necessary as construction and rebuilding continue, and as thousands of people remain displaced,” the motion said. “Families which signed short-term leases could face drastic price increases of 50% or more without further price gouging protection.”
Los Angeles County is home to more than 1 million rental properties, though not all of them needed protection from the new rule. There are already stricter rent increase caps for many residences, depending on the location, type and age of the building. Despite the rent control in the region, the people of Los Angeles pay among the highest rents in the country.
It is uncertain whether renters will face rapidly rising rents now that the protection has lapsed. But some real estate experts and policymakers said there was no need for the temporary rule that was part of the governor’s state of emergency.
Supervisors Kathryn Barger, Janice Hahn and Holly Mitchell abstained from voting on the motion to extend the protection, while Supervisors Hilda Solis and Horvath supported it.
“I abstained because I did not see sufficient evidence to justify extending this emergency ordinance, nor did I see evidence to eliminate it entirely,” Hahn said.
Barger’s office said she supported allowing the protections to sunset while waiting to see whether new information emerged.
“Market data already shows countywide rents are only about 2% above pre-emergency levels and rental inventory has grown,” Barger representative Helen E. Chavez Garcia said. “The Supervisor is also mindful of the burden these ongoing protections place on small property owners throughout the county.”
Mitchell did not immediately respond to a request for comment.
There haven’t been steep rent hikes in neighborhoods within three miles of the Palisades fire, according to a Times analysis of data from Zillow, the property listing company.
In ZIP Codes within three miles of the Palisades fire, rent increased 4.8% from December 2024 to April 2025. In areas around the Eaton fire, which destroyed swaths of Altadena, rent jumped 5.2% in the same period.
In L.A. County, ZIP Codes farther from the fires saw only about a 2% increase.
A landlords representative, Jesus Rojas of the Apartment Owners Assn. of Greater Los Angeles, told the supervisors during public comment at the meeting that the county’s rent-gouging rules have “long outlived the emergency they were intended to address” and are now being “wrongfully used to harm thousands of rental housing providers throughout the county.”
“There is no proof that multifamily rental housing providers are hugely increasing rents for impacted homeowners,” Rojas said.
Indeed, there are strong signs that the property market in the Los Angeles area has at last begun to cool.
L.A. metro-area rent prices recently fell to a four-year low, with the median rent slipping to $2,167 in December.
Meanwhile, condominium sales had their slowest start of the year in decades. Condo sales in Los Angeles have plummeted to a 20-year low, with fewer than 2,000 units sold in January and February — the worst start to the year since 2005.
Newsom defended the price-gouging protections shortly after they went into effect.
“In the days following the Los Angeles firestorms, we worked quickly to protect Los Angeles survivors from any form of exploitation,” he said in February 2025. “The state has the tools in place to not only block price gouging during this emergency, but also to prosecute bad actors.”
The Los Angeles County Department of Consumer and Business Affairs said it received more than 2,000 complaints after the fires, alleging that retailers and landlords were taking advantage of people put in hardship by their losses, and sent out more than 2,000 cease-and-desist letters to businesses and landlords for alleged price gouging, said Morine Merritt, who oversees department investigations into consumer and real estate fraud.
“Close to 90% of the complaints that we received involved allegations of rent increases,” Merritt said in an interview. Now that the fire-related protections have expired, existing laws and “regular market conditions determine price increases for goods and services, including rents,” she said.
Crackdowns on fire-related rent gouging have been rare, said Chelsea Kirk of the activist organization the Rent Brigade, which analyzed L.A. County’s rental market in the year after the fires. It reported 18,360 potential examples of price gouging in listings but said that few lawsuits had been filed by authorities so far.
Last week, Rent Brigade announced what it said was the first private civil lawsuit brought by a family that claimed to be rent-gouged in the aftermath of the wildfires. Plaintiffs Randall and Candy Renick, whose Altadena home was damaged, said they were charged nearly three times the maximum permitted rate for nearly 10 months. They seek restitution of $96,000 plus civil penalties and attorneys’ fees.
The rental market has probably stabilized since the fires, Kirk said, but other families may still be “locked into illegal rents” that they agreed to pay when they were in a rush to find housing after they were displaced.
Business
Read Nick Bilton’s Letter to Scott Pelley
Dear Mr. Pelley:
I meant what I said in my letter last week to the 60 Minutes team: joining 60 Minutes is the honor of my career and I am grateful to be working alongside the people who have contributed to the most important television journalism brand this country has ever produced. While I’m new to 60 Minutes, I’ve devoted my career to investigative journalism and storytelling. I started this job excited to collaborate and to benefit from the wisdom and experience of the 60 Minutes veterans, with you among them. For that reason, one of the first things I did in my new role was call you to talk and invite you to dinner. It is a profound disappointment that you rejected that overture and chose ambush instead. Yesterday, you hijacked my first meeting with staff to disparage me, my qualifications, and my intentions with remarkable incivility and contempt. I welcome a diversity of viewpoints and respectful debate among the team, but this was nothing of the sort. Yesterday’s performative display of hostility enacted in front of the staff instead of in a civil, private conversation-demonstrated that you have no interest in contributing to the future success of the show, or approaching my new tenure with a mind open to collaboration and progress. I am here to deliver first-in-class news programming, not to make headlines about newsroom drama. I am eager to work alongside those who share this goal.
Despite yesterday’s misconduct, I had hoped that in sitting down with you today we could find a path forward together. You made clear that you are not interested in such a path.
Your antipathy to the future of the show has come through loud and clear. And I have heard you. I therefore write on behalf of CBS News, Inc. (“CBS”) to inform you that your employment with CBS is terminated for cause effective immediately. Enclosed is your formal termination letter.
Sincerely,
Nick Bilton
Executive Producer, 60 Minutes
Business
Aspiration co-founder sentenced to 14 years for fraud
The co-founder of Aspiration, Joseph Sanberg, was sentenced to 14 years in prison on Monday after defrauding investors and lenders of over $248 million.
The startup, an eco-friendly digital banking company boasting fossil fuel-free investments, carbon offsets for gas purchases, and a debit card with cash-back benefits for shopping at clean companies, was founded by Sanberg and Andrei Cherny. Cherny left the company in 2022 and has not been charged.
Sanberg, an Orange County native, pleaded guilty to wire fraud in October after being arrested in March last year. Aspiration subsequently filed for bankruptcy and liquidated all of its assets by July.
Sanberg and venture capitalist Ibrahim AlHusseini, who also faces charges, together forged a series of bank statements in order to obtain loans. From 2020 to 2021, the pair forged AlHusseini’s bank statements to show millions of dollars in assets in order to obtain millions of dollars from lenders.
Additionally, they forged a letter from their audit committee stating that $250 million in funds were available, when in reality Aspiration had less than $1 million. The amount of loans defrauded exceeded $248 million.
In 2021, Sanberg artificially inflated Aspiration’s 2021 revenue by $44 million by recruiting 27 fake customers to sign letters of intent pledging tens of thousands of dollars per month for tree planting services. Sanberg himself funded the contracts and used the inflated revenue numbers to obtain more loans.
The charges sparked an NBA investigation into salary cap allegations due to Aspiration’s connections with Clippers owner Steve Ballmer.
Ballmer personally invested $60 million in Aspiration, all of which was lost. He is now the target of a civil lawsuit alleging his participation in the scheme. Ballmer denies the allegations.
The team announced a $300-million sponsorship deal with Aspiration, and Clippers player Kawhi Leonard signed a four-year, $28-million marketing contract with the company, which reportedly performed no duties. The issue has raised concerns about how players are circumventing the NBA’s salary cap.
The team lost the $300-million sponsorship deal and an additional $20 million paid for carbon offset purchases.
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