Business
L.A.’s trailblazing home builder is the latest to leave California
One of Los Angeles’ most influential home builders, KB Home, is relocating its headquarters out of state, becoming the latest high-profile firm to do so.
The company, which has been based in Los Angeles since 1963 and helped build its sprawling suburbs, is moving its main office to the Phoenix metropolitan area by spring 2027, in part to reduce costs and place its employees in a more affordable housing market.
KB Home touted Arizona’s business-friendly environment as a reason for the move, but said it still plans to maintain six operating divisions in California.
The move to Arizona will help accelerate KB Home’s growth and streamline operations, Robert McGibney, president and chief executive of KB Home, said in a news release last week.
“This move brings our teams together in a more collaborative environment, and Phoenix is the right place to do it,” McGibney said.
The company has deep ties to California, with more than 100 projects and tens of thousands of homes across the state. KB Home has opened nine housing communities in Southern California in the last six months and plans to open 10 more by the end of 2026.
The company’s shares, which have been falling this year amid concern about the property market, have climbed around 1% since it made the announcement late Wednesday. They closed little changed Tuesday at $51.93.
KB Home got its start in Detroit in the 1950s and briefly shifted operations to Arizona before settling in California by 1963. The company, which gets its name from the last names of its founders, Donald Bruce Kaufman and Eli Broad, rode the boom and helped shape the growth of Southern California.
KB Home quickly emerged as one of the top builders of affordable homes in the country, starting in the post-World War II boom, when growing families across the country were leaving crowded cities for the promise of rapidly emerging suburban neighborhoods such as the San Fernando Valley in Los Angeles.
With first-time buyers as their intended customers, the company’s innovations included lowering prices by building homes on slabs, instead of digging costly basements. It pioneered providing financing for buyers and 10-year limited warranties on their homes.
Broad became one of LA.’s most influential civic leaders, using his multibillion-dollar fortune, political clout and forceful personality to spur advancements in the public sphere, particularly in the arts.
Eli Broad stands inside the Broad, a contemporary art museum on Grand Avenue in Los Angeles, in 2015.
(Genaro Molina / Los Angeles Times)
He helped guide the redevelopment of Bunker Hill in downtown Los Angeles after it was cleared for urban renewal, and it was there that he built perhaps his greatest legacy: his namesake Broad Museum, which houses the extensive private contemporary art collection that he and his wife, Edythe, accumulated.
As a downtown booster, he and then-Mayor Richard Riordan were widely credited with getting the Walt Disney Concert Hall completed in 2003, raising more than $200 million to get the stalled Frank Gehry-designed project back on track.
In the late 1970s, he became the founding chairman of the Museum of Contemporary Art, and he bailed it out of a financial scandal three decades later with a $30-million grant.
KB Home’s California exit is the latest in a corporate exodus from the state. Some companies have relocated to avoid high taxes and strict regulations that complicate doing business in the state. The move has often been done to cut costs and improve profitability.
Two other California-bred companies connected to real estate, Realtor.com and Public Storage, announced similar moves to Texas in February.
Realtor.com, a real estate services company, was drawn to the Lone Star State for its unparalleled housing growth and affordable living, according to a news release. Public Storage, the largest self-storage business in the country, announced a similar move, citing interest in Texas’ growing talent and innovation.
The Golden State has remained the fourth-largest economy in the world, even as steep taxes and stringent environmental regulations push some firms to leave. Powerful companies across business sectors have expressed discontent with the state’s business environment.
Tesla and financial services firm Charles Schwab left the San Francisco Bay Area in 2021. Elon Musk’s SpaceX and X exited the state in 2024, along with Chevron, the oil giant that was started in California.
California has also lost residents, who are fleeing high housing costs for more affordable states such as Arizona, Nevada, Oregon, Washington and Texas.
California has led the nation in net out-migration for six consecutive years, according to U-Haul data. Los Angeles County lost 54,000 residents from 2024 to 2025, partially due to continued out-migration to other states.
Business
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Business
Civil case against Alec Baldwin, ‘Rust’ movie producers advances toward a trial
Nearly two years after actor Alec Baldwin was cleared of criminal charges in the “Rust” movie shooting death, a long simmering civil negligence case is inching toward a trial this fall.
On Friday, a Los Angeles Superior Court judge denied a summary judgment motion requested by the film producers Rust Movie Productions LLC, as well as actor-producer Baldwin and his firm El Dorado Pictures to dismiss the case.
During a hearing, Superior Court Judge Maurice Leiter set an Oct. 12 trial date.
The negligence suit was brought more than four years ago by Serge Svetnoy, who served as the chief lighting technician on the problem-plagued western film. Svetnoy was close friends with cinematographer Halyna Hutchins and held her in his arms as she lay dying on the floor of the New Mexico movie set. Baldwin’s firearm had discharged, launching a .45 caliber bullet, which struck and killed her.
The Bonanza Creek Ranch in Santa Fe, N.M. in 2021.
(Jae C. Hong / Associated Press)
Svetnoy was the first crew member of the ill-fated western to bring a lawsuit against the producers, alleging they were negligent in Hutchins’ October 2021 death. He maintains he has suffered trauma in the years since. In addition to negligence, his lawsuit also accuses the producers of intentional infliction of emotional distress.
Prosecutors dropped criminal charges against Baldwin, who has long maintained he was not responsible for Hutchins’ death.
“We are pleased with the Court’s decision denying the motions for summary judgment filed by Rust Movie Productions and Mr. Baldwin,” lawyers Gary Dordick and John Upton, who represent Svetnoy, said in a statement following the hearing. “He looks forward to finally having his day in court on this long-pending matter.”
The judge denied the defendants’ request to dismiss the negligence, emotional distress and punitive damages claims. One count directed at Baldwin, alleging assault, was dropped.
Svetnoy has said the bullet whizzed past his head and “narrowly missed him,” according to the gaffer’s suit.
Attorneys representing Baldwin and the producers were not immediately available for comment.
Svetnoy and Hutchins had been friends for more than five years and worked together on nine film productions. Both were immigrants from Ukraine, and they spent holidays together with their families.
On Oct. 21, 2021, he was helping prepare for an afternoon of filming in a wooden church on Bonanza Creek Ranch. Hutchins was conversing with Baldwin to set up a camera angle that Hutchins wanted to depict: a close-up image of the barrel of Baldwin’s revolver.
The day had been chaotic because Hutchins’ union camera crew had walked off the set to protest the lack of nearby housing and previous alleged safety violations with the firearms on the set.
Instead of postponing filming to resolve the labor dispute, producers pushed forward, crew members alleged.
New Mexico prosecutors prevailed in a criminal case against the armorer, Hannah Gutierrez, in March 2024. She served more than a year in a state women’s prison for her involuntary manslaughter conviction before being released last year.
Baldwin faced a similar charge, but the case against him unraveled spectacularly.
On the second day of his July 2024 trial, his criminal defense attorneys — Luke Nikas and Alex Spiro — presented evidence that prosecutors and sheriff’s deputies withheld evidence that may have helped his defense . The judge was furious, setting Baldwin free.
Variety first reported on Friday’s court action.
Business
California’s gas prices push Uber and Lyft drivers off the road
The highest gas prices in the country are making it tougher for some gig drivers to make a living.
Gas prices have shot up amid the war in the Middle East. On average, California gas prices are the most expensive in the United States, according to data from the American Automobile Assn. The average price of regular gas in California is almost $6. The national average is a little above $4.
While Uber and Lyft drivers have concocted clever ways to cut gas consumption, they say that without some relief they will be forced to leave the ride-hailing business.
John Mejia was already struggling to make money as a part-time Lyft driver when soaring gas prices made his side hustle even harder.
“Unfortunately, it’s the economics of paying less to drivers and gas prices,” he said. “It actually is pulling people out of the business.”
Guests at The Westin St. Francis hotel get into an Uber.
(Jess Lynn Goss / For The Times)
Gig work offers drivers the freedom to work for themselves and more flexibility, but being independent contractors also means they must shoulder unexpected costs.
Ride-sharing companies say they’re trying to help, but drivers say the gas relief comes with caveats. For now, drivers say they’re being pickier about what rides they accept, cutting hours and are looking at other ways to make money.
Mejia, who started driving for Lyft more than a decade ago, said in his early days, he would sometimes make $400 in three hours. Now it takes 12 hours to rake in $200.
The San Francisco Bay Area consultant is an active member of the California Gig Workers Union, so he knows he isn’t alone. California has more than 800,000 gig rideshare drivers, according to the group, which is affiliated with the Service Employees International Union.
On social media sites such as Reddit and Facebook, gig workers have posted about how the higher gas prices are eating into their earnings. Among the tricks they are suggesting: reducing the number of times the ignition is turned on or off, avoiding traffic, working in specific neighborhoods and at times with high demand and switching to electric vehicles.
Gig drivers usually have only seconds to decide whether to accept a ride on the app, but they have become more strategic about which rides and deliveries they accept.
That means they are more likely to sit back in their cars and wait for higher fares for quick pick-up and drop-off.
“I highly recommend the ‘decline and recline’ strategy, rejecting unprofitable rides until a better one appears,” wrote Sergio Avedian, a driver, in the popular blog the Rideshare Guy.
Pedestrians cross the street in front of a Lyft and Uber driver on Wednesday. High gas prices have made it hard for gig drivers to make a living, cutting into their profits.
(Jess Lynn Goss / For The Times)
Uber, Lyft and other companies have unveiled several ways to help drivers save on gas.
Uber said drivers can get up to 15% cash back through May 26 with the Uber Pro card, a business debit Mastercard for drivers and couriers. Based on a worker’s tier, they can get up to $1 off per gallon of gas through Upside — an app that offers cash rewards — and up to 21 cents off per gallon of gas with Shell Fuel Rewards. The company also offers incentives for drivers who want to switch to electric vehicles.
“We know the price of gas is top of mind for many rideshare and delivery drivers across the country right now,” Uber said in a blog post about its gas savings efforts.
Lyft also said it’s expanding gas relief through May 26 because the company knows that the extra cost “hits hardest for drivers who depend on driving for their income.”
The company is offering more cash back, depending on the driver’s tier, for drivers who use a Lyft Direct business debit card to pay for gas at eligible gas stations. They can get an additional 14 cents per gallon off through Upside.
Drivers say the fine print on the offers dictates which card they use and where they fill up gas, making it difficult for them to save money.
“If I do the math, it’s ridiculous,” Mejia said. “They’re offering us nothing.”
Uber declined to comment, but pointed to its blog post about the gas relief efforts. Lyft also referenced the blog post and said “the gas savings were structured through rewards to maximize stackable opportunities.”
Guests at The Westin St. Francis hotel get into an Uber.
(Jess Lynn Goss / For The Times)
Gig workers have struggled with rising gas prices in the past.
In 2022, Lyft and Uber temporarily added a surcharge to their fares amid record-high gas prices following Russia’s invasion of Ukraine. This year, Uber is adding a fuel charge to its fares in Australia for roughly two months to offset the high cost of gas for drivers. Lyft said it hasn’t added a fuel charge in the U.S. or elsewhere.
Margarita Penalosa, who drives full time for Uber and Lyft in Los Angeles, started as a rideshare driver in 2017. Back then, gas was cheaper. She would easily hit her goal of making $300 in eight hours. Now she’s making just $250 after working as much as 14 hours.
Gas prices, she said, used to be less than $3 per gallon. Now some gas stations are charging more than $8 per gallon.
“Take out the gas. Take out the mileage from my car and maintenance. How much [do] I really make? Probably I get $11 for an hour,” she said.
Jonathan Tipton Meyers wants to spend fewer hours as a rideshare driver.
He already juggles multiple gigs even while driving for Uber and Lyft in Los Angeles. He’s a mobile notary and loan signing agent, a writer and performer.
Driving is “a very challenging, full-time job,” he said. “It’s very taxing and, of course, wages were just continually decreasing.”
John Mejia, a longtime Lyft and Uber driver, poses for a portrait before attending a meeting about unionizing gig drivers.
(Jess Lynn Goss / For The Times)
Even if oil continues to flow through the Strait of Hormuz, which Iran reopened Friday, it could take a while for gas prices to come down to earth, said Mark Zandi, the chief economist at Moody’s Analytics.
“There’s an old adage that prices rise like a rocket and fall like a feather,” he said. “I think that’ll apply.”
In the meantime, it will be survival of the fittest drivers. If enough of them decide to leave the apps, the ride-hailing companies could be forced to raise fares further to attract some back.
“Those who approach rideshare driving strategically, tracking expenses, choosing trips carefully, and optimizing efficiency are far more likely to weather periods of high gas prices,” wrote Avedian in the Rideshare Guy blog. “For everyone else, a spike at the pump can quickly turn rideshare driving from a side hustle into a money-losing venture.”
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