Southwest
Housing costs are crushing families – here’s the way out
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Treasury Secretary Scott Bessent recently declared that President Donald Trump’s administration is considering declaring an emergency situation for housing. He pointed out the weakest summer home sales in a decade, with more than 15% of transactions falling through in July, the highest cancellation rate since record-keeping commenced in 2017. Prices, though below pandemic levels, are still too lofty for working- and middle-class Americans.
Bessent is right to sound the alarm, and a housing emergency declaration is long overdue.
For too long, politicians have praised the virtues of homeownership while supporting policies that make it harder to achieve. America no longer produces enough houses to meet demand, and existing houses have become more costly than they would otherwise have been due to restrictions imposed by government on building and investing.
America no longer produces enough houses to meet demand, and existing houses have become more costly than they would otherwise have been due to restrictions imposed by government on building and investing. (Jim Watson/AFP via Getty Images)
National housing experts estimate the United States is short between 3.2 million and 5.5 million homes, depending on the methodology used. Freddie Mac puts the gap at roughly 3.8 million units, while the National Low Income Housing Coalition reports a shortage of more than 7 million affordable and accessible units. This gap between supply and demand is the very reason for rising home prices.
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Government regulations have been largely responsible for causing the shortage.
Studies from the National Association of Home Builders show that federal, state and local regulations account for nearly 24% of the price of a new single-family home and more than 40% of the cost of new multifamily housing. Zoning limitations that restrict density, lengthy permitting programs that draw out projects over years, and building codes that differ significantly from one jurisdiction to another all create unnecessary costs and lost time. For some metro regions, it takes over a decade to transition a project from conceptualization through completion.
If the Trump administration does indeed choose to declare a national housing emergency, its resulting emergency plan should not seek to micromanage local housing markets or build new federal bureaucracies. Instead, it should focus on clearing away the obstacles that make it harder for the private sector to meet today’s growing demand for housing.
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Wherever stringent restrictions have been imposed upon developers or landlords, housing availability has contracted and affordability has gotten further out of reach. Conversely, where markets are freed to act – when permitting is streamlined, financing is accessible and development is allowed to respond to demand – housing has become more plentiful and prices have stabilized.
California shows how this plays out. For decades, stringent zoning and environmental vetting brought building close to a halt, leaving the state short almost 1.3 million units , according one recent estimate. By contrast, states like Texas, which moved more quickly on permitting and allowed higher-density development, have seen faster growth in supply and more moderate price increases even as their populations expanded. In fact, home prices are declining faster in Texas than any other state.
Instead of following states like Texas’ lead and tackling the root causes of the housing shortage, Washington, D.C., continues to scapegoat the private sector.
Take, for example, the trend of blaming rent pricing software.
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Launched under President Joe Biden, this effort wrongly blames technology tools that give real-time housing pricing. Targeting AI may make for nice sounding press releases, but it’s no different than blaming the weatherman for the rain. This technology just reports on what the market is bearing and regulating it away does nothing to put more homes on the market or reduce costs for families.
Or how about the federal and state lawmakers who have chosen to point fingers at housing investors? A study led by New York University’s Joshua Coven found that markets with greater institutional investment saw both an increase in available rental housing and a measurable drop in rents. This is because large-scale investors add to the pool of available rentals, which can ease competition and moderate costs.
In other words, when investment is welcomed and new units are built, families benefit directly through lower costs and more options.
What does this all mean?
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Well, instead of seeing its role as one of restricting market activity, the Trump administration should view its job as one of increasing it. Because the only way to solve an affordable housing shortage is to build and invest more.
One approach could be to catalyze reform at the state and local level by making some programs and grants conditional on removing artificial limitations on construction, such as outdated zoning restrictions that prohibit multifamily development in high-demand areas.
Another could be to streamline federal permitting for infrastructure projects that support housing, such as roads, utilities and transit. These projects frequently get delayed and become more costly or less likely to get constructed as they languish, and streamlining would encourage builders to construct more.
The White House has already prioritized enacting economic policies that have freed workers and businesses from unnecessary burdens – ending taxes on tips and overtime, reducing red tape, and promoting growth through opportunity. Housing deserves the same treatment: less government interference and more room for private investment.
This approach has worked before. Federal leaders just need to let it work again.
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Los Angeles, Ca
Heat advisory, beach hazards in effect as Southern California sizzles
Southern California is bracing for several days of dangerous heat, prompting the National Weather Service to issue a heat advisory for parts of Los Angeles and Ventura counties while warning beachgoers of hazardous ocean conditions along the coast.
KTLA meteorologist Henry DiCarlo said Thursday’s heat is only the beginning of a prolonged stretch of above-average temperatures expected to last well into next week.
“We’re going to be warm through the weekend,” DiCarlo said. “There is a weekend cool down, but then we get hot again next week. So this hotter trend that we have is really not going anywhere anytime soon.”
According to the National Weather Service, the heat advisory remains in effect until 10 a.m. Tuesday for portions of southwest California, including the Los Angeles County inland coast, downtown Los Angeles and the northern Ventura County mountains.
Forecasters expect highs ranging from 85 to 90 degrees across coastal valleys and 90 to 105 degrees in interior valleys.
While Southern California routinely experiences hot weather in July, DiCarlo said this event stands out because of its duration and intensity.
“It’s one thing to be hot, which is average this time of year,” he said. “But when we go 95, 100, that’s well above the average.”
Health officials urge residents to limit strenuous outdoor activity during the hottest part of the day, drink plenty of water and seek air-conditioned spaces whenever possible to reduce the risk of heat-related illness.
DiCarlo also reminded pet owners to take extra precautions.
“If it’s hot for you, it’s hot for them,” he said. “Don’t leave kids, don’t leave your pets in the car. Don’t take your pet for a walk in the middle of the day. They’re not wearing shoes, and those pads can get burned rather quickly.”
The hot, humid conditions could also make temperatures feel even warmer, especially in the high desert, where actual highs are forecast to reach around 105 degrees. A chance of afternoon and evening thunderstorms next week may increase humidity, creating an even more uncomfortable feel.
Along the coast, beachgoers are also being urged to use caution as elevated surf and dangerous rip currents continue.
The National Weather Service has issued a Beach Hazards Statement through Saturday evening for Los Angeles and Ventura county beaches, where strong rip currents and breaking waves could create life-threatening swimming conditions.
Officials recommend swimming near an occupied lifeguard tower, never turning your back on the ocean and avoiding jetties and rock structures, where waves can unexpectedly sweep people into the water.
With the prolonged heat expected to continue, forecasters say residents should continue monitoring the forecast and prepare for additional advisories as temperatures remain well above seasonal averages through next week.
Los Angeles, Ca
Loved ones search for missing 34-year-old Southern California woman
Loved ones are searching for a 34-year-old Southern California woman who has been missing for over a week.
Amy Lynn Edmonds, 34, was reported missing on June 28, the Los Angeles County Sheriff’s Department said.
Edmonds, who is considered at-risk, was last seen walking away from Coast Plaza Hospital in Norwalk.
She is 5 feet 4 inches tall and weighs 140 pounds. She has brown eyes and brown hair. She was last seen wearing a blue jacket and was carrying a black backpack.
It’s unclear where she may have been heading when she disappeared.
Authorities said Edmonds has mental health and medical issues that require medication. Neither hospital staff nor loved ones have heard from her since and they are concerned for her well-being.
Anyone who may know Edmond’s whereabouts or has information on the case can call LASD’s Missing Persons Detail at 323-890-5500.
Anonymous tips can be provided to L.A. Regional Crime Stoppers at 1-800-222-8477 or online at lacrimestoppers.org.
Los Angeles, Ca
Waymo video could determine charges after teens’ bizarre California ride
Police are still waiting for video from Waymo before deciding whether two teenagers accused of drinking alcohol and firing an Orbeez gun from inside one of the company’s self-driving vehicles could face additional charges, a San Mateo police spokesperson told KTLA.
The incident unfolded around 2:10 p.m. Monday when a Waymo representative contacted the San Mateo Police Department to report suspicious behavior inside one of the company’s autonomous vehicles.
“The Waymo rep who contacted us told us they saw what they described as a firearm in the vehicle, described it black in color, and at some point believed that the passengers were firing it outside of the vehicle,” Community Relations Officer Janine Luna said. “Even at one point saying they believed they saw a recoil.”
The representative also reported that the passengers appeared to be intoxicated and had an open bottle of alcohol inside the vehicle, Luna said.
Believing they were responding to reports of a firearm being fired from a moving vehicle, officers coordinated with Waymo to conduct what police described as a high-risk traffic stop.
Luna said Waymo remotely disabled the vehicle in a location where officers could safely respond. The company then informed the passengers that the vehicle was experiencing mechanical problems while officers made their way to the scene.
Although the vehicle was disabled, its doors remained unlocked and the passengers could have exited if they wanted to, Luna said. Instead, they stayed inside until officers arrived, cleared the vehicle and detained the occupants.
Investigators later determined the suspected firearm was an Orbeez gun, a motorized toy that fires water-filled gel pellets.
While Orbeez guns are legal to possess, Luna said the one recovered by officers had been partially painted black, making it appear more like a real firearm.
“We’ve been seeing that a lot, where people are taking BB guns, water guns, toy guns, completely painting them over, and then in a lot of cases they actually do really look like real guns,” she said.
Police said no injuries or property damage have been reported, and no victims have come forward.
The two passengers, both 15 years old, were released to their parents and were not arrested, Luna said.
Authorities have already forwarded the underage drinking allegation to the juvenile district attorney for review. However, investigators are still waiting to receive Waymo video before deciding whether to recommend any additional charges.
“We’re still waiting to receive that video to determine what, if anything, they’ll be charged with,” Luna said. “Obviously it’s a water gun or toy gun. It’s not illegal to carry, but depending on shooting from a moving vehicle, there’s some of that that can come into play.”
Luna said this was the first time the San Mateo Police Department had handled an incident in which Waymo contacted officers in real time to report suspicious activity inside one of its vehicles.
The incident comes just weeks after another high-profile Waymo incident in Southern California. In late June, several teens were seen hanging out of the windows of a self-driving Waymo as it traveled through Santa Monica traffic. Waymo later told KTLA those riders’ accounts had been suspended for violating the company’s user agreement.
Luna also urged parents to keep an eye on their children during summer break and reminded the public not to alter the appearance of toy guns to make them resemble real firearms.
“We want to give our kids freedom to have fun and enjoy their time off from school,” Luna said. “But because they’re not in school, just keep an eye on them. Make sure you know where they’re at. Make sure you know who they’re hanging out with.”
Iman Palm and Aaron Tolentino contributed to this report.
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