Business
Wildfires Will Deepen Housing Shortage in Los Angeles
Each of the homes burned in the Los Angeles fires is its own individual calamity.
Collectively, the losses — whether in the hundreds or, as is far more likely, in the thousands — will weigh on the city’s already urgent housing shortage.
Fires are still raging, and with 180,000 people under evacuation orders as of Thursday morning, the degree of displacement in the city and its surrounding areas will take time to assess. For the time being, evacuees are holing up in public shelters in Los Angeles County, with friends or family members or in hotels.
But in the coming weeks and months, people whose homes are gone will have to find more stable accommodations while they rebuild. That will not be easy in a metro area that, as of 2022, already had a shortage of about 337,000 homes, according to data from Zillow. The number of homes on the market in Los Angeles was 26 percent below prepandemic norms as of December, according to Zillow.
“One of the biggest challenges ahead will be getting people who lost their homes into permanent, long-term housing,” Victor M. Gordo, the mayor of Pasadena, said on Wednesday. Pasadena, which is battling the Eaton fire, has already lost hundreds of homes.
The area’s tight rental market is likely to become further strained as many of the thousands of displaced residents turn to rental units, while figuring out their next move. The median rent for a one-bedroom apartment in Los Angeles, as of Jan. 7, was more than $2,000, according to Zillow.
“You’re going to have a positive shock in demand, and a negative shock in supply, so this automatically means prices go up in the rental markets,” said Carles Vergara-Alert, a professor of finance at IESE Business School in Barcelona, who has studied the effects of wildfires on housing markets.
Any uptick in rental costs would affect tenants across the region, beyond those displaced by the fires, Dr. Vergara-Alert said.
Jonathan Zasloff, who lost his home in Pacific Palisades this week, teaches land use and urban policy at the University of California, Los Angeles law school, and is acutely aware of how his search for interim housing could affect the broader market.
Dr. Zasloff is staying with his brother for the time being, while a friend is putting up his wife and daughter. They evacuated their house, which they had lived in for almost 15 years, around noon on Tuesday, before the official evacuation order was issued for the area. That evening, Dr. Zasloff realized the severity of the crisis when he was watching television and saw a reporter standing on his fire-ravaged block.
His insurance agent told him it could take two to three years to rebuild his house. His family might try to find a rental in West Los Angeles near UCLA in the meantime, he said.
There aren’t many rentals in that part of the city, Dr. Zasloff said, so students and other renters could be displaced as he, and people like him who lost their homes, move in.
“It’s very possible that this event is going to cause a big increase in homelessness, even though the people who got pushed out of their homes are people of means,” he said.
California has been in the grip of an affordable housing crisis for a decade. Both state and local lawmakers have passed a raft of new laws that aim to make housing cheaper and more plentiful by making it easier to build. In Los Angeles, for instance, Mayor Karen Bass signed an executive order that streamlines permitting for projects in which 100 percent of the units are affordable. In response to state housing reforms, there has been a boom of backyard homes — called accessory dwelling units, or A.D.U.s — that homeowners often rent out for extra income and that have added to the housing stock.
Still, both the city and state remain well behind their housing production goals, and affordability has only continued to erode. The number of apartment units approved by the city of Los Angeles, for example, dipped to a 10-year low in 2024, according to data from the Los Angeles Department of Building and Safety compiled by Crosstown LA, a news site. That downturn in building permitting has raised concern about roadblocks to new housing unit creation.
“This is a place that had massive affordability challenges last week, and after this week it’s going to be that much more challenging,” said Dave Rand, a land-use lawyer at Rand Paster & Nelson in Los Angeles, who also serves on the board of directors of a statewide affordable housing organization.
After the fires are extinguished and the recovery begins, Mr. Rand said, there is hope that the common cause of rebuilding can be a catalyst for tackling affordability challenges by continuing to make it easier to build housing, particularly affordable rental housing, at a faster pace.
“This is such a devastating event that hopefully it rocks the system to the point where we can get real reform,” he said.
The Los Angeles City Council has aimed to build nearly half a million new units by 2029. But many people trying to rebuild all at once after the fires could lead to higher costs, and slow down the overall production of housing, said Jason Ward, a co-director of the center on housing and homelessness at the RAND Corporation.
A longstanding construction labor shortage in Los Angeles does not help. Andy Howard, a general contractor who has worked across the city for three decades, including in the areas affected by the fires, said many of the subcontractors he work with in the past have left California since the pandemic. And there are not enough young people entering the industry.
The fires are “going to make it worse,” Mr. Howard said. “It’s going to drive the cost up, for sure.”
Business
News Analysis: Trade deal or trade truce? Questions remain as Trump meets with China’s Xi
WASHINGTON — President Trump faces the most important international meeting of his second term so far on Thursday: face-to-face negotiations with Xi Jinping, who has made China a formidable economic and military challenger to the United States.
The two presidents face a vast agenda during their meeting in Seoul, beginning with the two countries’ escalating trade war over tariffs and high-tech exports. The list also includes U.S. demands for a Chinese crackdown on fentanyl, China’s aid to Russia in its war with Ukraine, the future of Taiwan and China’s growing nuclear arsenal.
Trump has already promised, characteristically, that the meeting will be a major success.
“It’s going to be fantastic for both countries, and it’s going to be fantastic for the entire world,” he said last week.
But it isn’t yet clear that the summit’s concrete results will measure up to that high standard.
Treasury Secretary Scott Bessent said Sunday that the two sides have agreed to a “framework” under which China would delay implementing tight controls on rare earth elements, minerals crucial for the production of high-tech products from smartphones and electric vehicles to military aircraft and missiles. He said China has also agreed to resume buying soybeans from U.S. farmers and to crack down on fentanyl components.
In return, Bessent said, the United States will back down from its stinging tariffs on Chinese goods.
Nicholas Burns, the U.S. ambassador in Beijing under then-President Biden, said that kind of deal would amount to “an uneasy trade truce rather than a comprehensive trade deal.”
“That may be the best we can expect,” he said in an interview Monday. Still, he added, “it will be a positive step to stabilize world markets and allow the continuation of U.S.-China trade for the time being.”
But U.S. and Chinese officials have been close-mouthed on what, if anything, has been agreed on regarding Xi’s other big trade demand: easier U.S. restrictions on high-tech exports to China, especially advanced semiconductor chips used for artificial intelligence.
Burns said the two superpowers’ technology competition is “the most sensitive … in terms of where this relationship will head, which country will emerge more powerful.”
Giving China easy access to advanced semiconductors “would only help [the Chinese army] in its competition with the U.S. military for power in the Indo-Pacific,” he warned.
Other former officials and China hawks outside the administration have said, even more pointedly, that they worry that Trump may be too willing to trade long-term technology assets for short-term trade deals.
In August, Trump eased export controls to allow Nvidia, the world leader in AI chips, to sell more semiconductors to China — in an unusual deal under which the U.S. company would pay 15% of its revenue from the sales to the U.S. Treasury.
Matthew Pottinger, Trump’s top China advisor in his first term, protested in a recent podcast interview that the deal risked trading a strategic technology advantage “for $20 billion and Nvidia’s bottom line.”
Underlying the controversy over technology, some China watchers warn, is a basic mismatch between the two presidents: Trump is focused almost entirely on trade and commercial deals, while Xi is focused on displacing the United States as the biggest economic and military power in Asia.
“I don’t think the administration has a strategy toward China,” said Bonnie Glaser, a China expert at the German Marshall Fund of the United States. “It has a trade strategy, not a China strategy.”
“The administration does not seem to be focused on competition with China,” said Jonathan Czin, a former CIA analyst now at Washington’s Brookings Institution. “It’s focused on deal making. … It’s tactics without strategy.”
“We’ve fallen into a kind of trade and technology myopia,” he added. “We’re not talking about issues like China’s coercion [of smaller countries] in the South China Sea. … China doesn’t want to have that bigger, broader conversation.”
It isn’t clear that Trump and Xi will have either the time or inclination to talk in detail about anything other than trade.
And even on the front-burner economic issues, this week’s ceasefire is unlikely to produce a permanent peace.
“As with all such agreements, the devil will be in the details,” Burns, the former ambassador, said. “The two countries will remain fierce trade rivals. Expect friction ahead and further trade duels well into 2026.”
“Buckle up,” Czin said. “There are likely more sudden moves from Beijing ahead.”
In the long run, Trump’s legacy in U.S.-China relations will rest not only on trade deals but on the larger competition for economic and military power in the Pacific Rim. No matter how this week’s meetings go, those challenges still lie ahead.
Business
Commentary: The NBA’s gambling scandal was utterly predictable — and other pro sports will be next
I may be revealing a secret cherished by columnists the world over, but I admit that among the columns we relish writing the most fall into the “I told you so” genre.
Case in point: In April last year, in a column about the gambling mess ensnaring Shohei Ohtani’s then-interpreter, I warned that the pro sports leagues’ enthusiastic embrace of betting would inevitably produce a major scandal.
“It might not surface in the next months or even years,” I wrote, “but it will happen.”
Get a big bet on Milwaukee tonight.
— Damon Jones’ alleged message to gamblers after learning that LeBron James would be sitting out a Lakers-Bucks game
The calendar, as it turned out, ticked over at 19 months. Last Thursday, federal prosecutors charged National Basketball Assn. player Terry Rozier and former NBA player and assistant coach Damon Jones with fraud and money laundering in connection with a scheme to fix bets on NBA games. Portland Trail Blazers head coach Chauncey Billups was charged in a separate indictment linking him to a Mafia scheme to fix poker games; Jones was also named in that indictment.
The NBA has placed Billups and Rozier on leave. They’re both due to appear in federal court in Brooklyn over the next few weeks to enter pleas, though both have asserted their innocence.
It may not be easy for the league to wash its hands of this mess. All the professional sports leagues spent years shunning gambling as a threat to their public image of integrity before embracing the siren call of big-time sports betting, bringing gambling companies and their ever-increasing customer base into their tents. But the NBA was ahead of the crowd.
In a 2014 op-ed, NBA Commissioner Adam Silver effectively cried “uncle” in the league’s battle against gambling.
“For more than two decades,” he wrote, “the National Basketball Association has opposed the expansion of legal sports betting, as have the other major professional sports leagues in the United States.” The leagues supported a 1992 federal law prohibiting sports betting except in grandfathered venues, such as Las Vegas.
They took a stern position against players and personnel caught betting on their games and their sports, dating to 1919 and the so-called Black Sox scandal, in which eight members of the Chicago White Sox were accused of throwing the World Series for the benefit of a gambling ring. Major League Baseball hired an austere federal judge, Kenesaw Mountain Landis, as its commissioner and gave him unchecked authority to clean up the game. He banned the eight players from baseball forever.
In recent times, Silver observed in his op-ed, the American appetite for sports betting has only risen. Accordingly, he called for legalizing the practice so it could be “brought out of the underground and into the sunlight where it can be appropriately monitored and regulated.”
(The 1992 law was overturned by the Supreme Court, and legalized sports betting spread coast to coast.)
Given the subsequent developments, one can tag Silver for his childlike innocence in counting on the government to regulate an industry collecting billions of dollars a year from millions of users while operating with a legal imprimatur.
Silver wrote that among his “most important responsibilities as commissioner of the N.B.A. is to protect the integrity of professional basketball and preserve public confidence in the league and our sport.”
When I asked the NBA if Silver has had second thoughts about his 2014 op-ed, the league replied, “We continue to believe that a legal, regulated, and monitored sports betting market is far superior to an illegal one operating underground,” and suggested that a single federal regulator would be preferable to the existing state-by-state patchwork, though the activities alleged in the federal indictments almost surely would be crimes in any state. Silver did say during a broadcast interview Friday that the case gave him “a pit in my stomach.”
The league’s ability to monitor the behavior of its own people is questionable. Consider a March 23, 2024, Charlotte Hornets game against the New Orleans Pelicans. According to the indictment, Rozier let the gambling conspirators know that he would take himself out of the game early, allowing them to profit from bets that his stats would fall short of bookmakers’ expectations.
The NBA, alerted by sports wagering companies to “aberrational behavior” involving Rozier in the game, investigated but later said it could find any “violation of NBA rules.”
The NBA can hardly claim to have been blindsided by the new indictments. Only last year, another federal gambling case erupted involving NBA games.
In that case, prosecutors alleged that a gambler named Ammar Awawdeh forced then-Toronto Raptors player Jontay Porter to take himself out of a game early. That led gamblers who knew of the arrangement to bet that his stats for the game would fall short of expectations; those insiders made more than $100,000 on their bets, the prosecutors charged.
According to text messages filed with the 2024 indictments, Awawdeh acknowledged “forcing” Porter to participate in the scheme to help clear some of his gambling debts.
Awawdeh engaged in plea negotiations in the case, but the outcome couldn’t be determined. Porter pleaded guilty to related federal fraud charges, and is scheduled to be sentenced in December. The NBA has banned Porter for life.
Awawdeh was also named in last week’s indictment over the alleged poker scam.
In recent years, the pro leagues have cozied up to the gambling industry, claiming that their interest is merely “fan engagement” — that is, keeping TV viewers in front of their sets even during blowout games.
Only 11 states bar sports gambling today. They include the customary anti-gambling holdouts Utah and Hawaii, and California, where ballot measures to legalize sports gambling were defeated in 2022. As I mentioned in 2024, the perils of this expansion are manifest.
They’ve created a new underclass of gambling addicts while largely failing to fulfill their advocates’ assurances that state-sponsored and regulated gambling would produce a new, risk-free revenue stream for state and local budgets. The outcomes of some games have come under suspicion even where no evidence of fixing has been found.
The leagues have gone beyond just tolerating gambling; they’ve made partnership and sponsorship deals with the major sports gambling companies. The two leading companies, FanDuel and DraftKings, are official corporate gambling partners of the NBA, National Football League and Major League Baseball.
During broadcasts and steaming of games, it’s common to see in-game statistical projections on-screen — what are the chances of this hitter striking out, or hitting a home run, for instance.
During the seventh inning of Game 2 Saturday, Fox flashed a projection that there was a 36% chance that Yoshinobu Yamamoto would pitch 9+ innings. (He went the distance.)
The only reason to offer such projections is to feed the appetite for in-game proposition, or “prop,” bets. These are fundamentally bookmakers’ estimates. They don’t tell ordinary viewers anything they need to know to enjoy the coming innings, but do give bettors something to chew on before putting money down on the proposition “will Yamamoto pitch a complete game?”
In-game prop bets, as it happens, are like heroin to the vulnerable, offering instant gratification (or dismay). They “may be associated with risky gambling behavior,” according to the National Council on Problem Gaming. Draftkings heavily promotes prop bets on its sportsbook web page.
In a memo issued Monday, the NBA singled out prop bets as trouble spots: “In particular,” the memo says, “proposition bets on individual player performance involve heightened integrity concerns and require additional scrutiny.”
The major gaming companies have rolled out new ways to keep bettors betting. Smartphone apps, for example. In the old days no one could place a legal sports bet without traveling to Las Vegas, a built-in curb on problem gambling. Today, anyone with a smartphone can place a bet, often without certifying their age or financial resources.
“The advent of smartphones in 2007 and the Supreme Court decision in 2018 opened the door to fully frictionless, 24/7 legal gambling,” problem gambling experts Jonathan D. Cohen and Isaac Rose-Berman wrote recently.
I asked FanDuel and DraftKings if they accepted any responsibility for problem gaming in the U.S. DraftKings didn’t reply. A spokesman for FanDuel told me by email that the company “takes problem gambling seriously and continually works to identify at-risk behavior … including when a customer attempts to deposit significantly more than what they typically do,” or “excessive time on site, chasing losses or signals from customer service interactions.” In those cases, the company sometimes imposes deposit limits or timeouts or can exclude the user entirely.
That brings us to the latest indictments. The feds identified seven NBA games in 2023 and 2024, including the 2023 game in which Rozier allegedly tipped confederates to his decision to bench himself.
Among the others were a 2023 Trail Blazers game in which gamblers were tipped that the team would sit its best players so it would lose, thereby acquiring a better position in the upcoming NBA draft; and two Lakers games in which Jones allegedly tipped gamblers that star LeBron James, a friend since they played together on the Cleveland Cavaliers, was hurt and wouldn’t be playing.
“Get a big bet on Milwaukee tonight,” Jones allegedly told a contact before the first game, against the Milwaukee Bucks. James sat it out and the Lakers lost. James isn’t identified by name in the indictment, but its description of his roles helped identify him. James hasn’t made a public comment about the case, but he hasn’t been accused of any wrongdoing.
Can anything stem this tide? The smart bet at this moment is “no.” There’s just too much money riding on the continued expansion of sports betting: DraftKings has more than doubled its revenue since 2022, reaching $4.8 billion last year, and nearly doubling its monthly average users to 3.7 million. FanDuel is owned by a British gambling conglomerate, so its U.S. sports revenue is difficult to parse.
That’s a lot of money to be thrown around promoting more sports gambling, making it harder for governments to regulate and for sports leagues to turn up their noses at the income. Keeping their image for integrity intact in this world of greedy and needy players and voracious gamblers is only going to get harder.
Business
Staffing issues trigger temporary ground stop at LAX
Nearly four weeks into the federal government shutdown, a staffing shortage at Los Angeles International Airport prompted a temporary ground stop Sunday morning affecting flights at the West Coast’s largest and busiest airport.
The restriction began around 8:45 a.m., affecting departing flights for Oakland, and was lifted at 10:30 a.m., according to an FAA Air Traffic Control System Command Center advisory.
The stoppage affected most of Southern California, leaving passengers experiencing flight delays of around 49 minutes, with some waiting up to 87 minutes, according to KTLA.
Even after the resumption of flights, travelers were instructed to check the status of their flights.
Since the federal shutdown began Oct. 1, the Federal Aviation Administration has warned of disruption at airports due to staff shortages. Air traffic controllers are required to work unpaid when the federal government shuts down and do not obtain retroactive pay until Congress comes to an agreement on a budget.
Less than a week into the shutdown, dozens of flights were delayed and 12 flights were canceled as Hollywood Burbank Airport’s air traffic control tower was temporarily unstaffed due to shortages. Outgoing flights were delayed an average of two hours and 31 minutes.
Airports across the nation have experienced staff shortages at their air traffic control towers this month. On Sunday afternoon, the Federal Aviation Administration’s operations plan listed several major airports experiencing “staffing triggers,” from LAX to Ronald Reagan Washington National Airport in Virginia and Philadelphia International Airport in Pennsylvania.
U.S. Secretary of Transportation Sean Duffy said Sunday the problem is getting worse as more controllers, getting no paychecks, are calling in sick.
“I’ve been out talking to air traffic controllers and you can see the stress,” Duffy said on Fox News. “These are people that oftentimes live paycheck to paycheck or one controller has a stay-at-home spouse. They’re concerned about gas in the car, they’re concerned about child care and mortgages.”
On Saturday, 22 airports had staffing shortages, Duffy said.
“That’s one of the highest that we have seen in the system since the shutdown began,” he said. “And that’s a sign that the controllers are wearing thin.”
California Gov. Gavin Newsom’s press office was quick to seize on news of the problems at LAX and goad Duffy.
“Hell of a job, @SecDuffy,” Newsom’s office posted on X, sharing a news story about the LAX ground stop. “Can’t wait to see what you do with NASA.”
This is not the first time a federal shutdown has triggered national disruptions to flights.
In January 2019, a large number of air traffic controllers called in sick in New York City, prompting the Federal Aviation Administration to temporarily halt flights into LaGuardia Airport.
The chaos at LaGuardia — and subsequent news coverage of airport delays and threats to air safety — swiftly motivated politicians to come to an agreement. But this year, Republicans and Democrats in Washington seem deadlocked and no closer to a deal.
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