Current Events in January 2025

Headlines have often focused on homes owned by the ultra-wealthy burning down from the fires that have swept Los Angeles, including a $450,000-per-month mansion filmed in the HBO show "Succession" and Paris Hilton's $8.4 million Malibu home.

But property data acquired by ConsumerAffairs reveals the number of second homes and investment homes typically aren't much higher than normal in the areas hit by LA fires, with a few exceptions.

Among 10 ZIP codes where the the Palisades or Eaton fires have burned, an average of 10% were either second homes or investment homes, which are often used for long-term or short-term rentals, according to a ConsumerAffairs analysis of estimates based on mortgages from 2018 to 2023 provided by Homebuyer.com.

In the Pacific Palisades ZIP code of 90272, which fires almost completely destroyed, nearly 8% of the homes were second homes or investment properties.

That compares to the Los Angeles County share of nearly 7% and California's and the U.S.'s share of nearly 8%.

Fires, which are still being fought, have destroyed more than 12,300 structures as of Friday, according to CalFire, but the ZIP codes identified by ConsumerAffairs had 102,143 homes as of 2023 Census estimates, meaning most homes aren't destroyed since the fires haven't fully engulfed all the postal regions.

The data also doesn't cover all-cash home purchases, which have grown more popular in recent years in competive housing markets because of high interest rates.

Still, some areas where fires have burned had higher shares of second homes or investment homes than usual.

In ZIP codes hit by the Palisades fire, the average was nearly 14%, compared to nearly 7% for those hit by the Eaton fire.

The East Malibu ZIP code of 90265, where the Palisades fire burned down beachfront homes, had the highest share by far: Nearly 34% of homes in the postal region are second homes or investment properties.

"Fires in LA County are tough on towns with a lot of second homes," Dan Green, founder of Homebuyer.com, told ConsumerAffairs. "When people stop visiting, local businesses take a big hit."

But having a second home isn't on the minds of many people who have seen their only house burn down, including in Altadena which has much fewer second homes.

The Altadena ZIP code of 91001, where the Eaton fire burned, had the lowest share of second homes or investment homes at nearly 4%, compared with the California share of nearly 8%.

What about short-term vacation rentals?

Airbnb and VRBO vacation rentals also aren't out of the ordinary among ZIP codes where fires burned, according to figures provided to ConsumerAffairs by rental-data firm AirDNA.

Most of the ZIP codes averaged around 1% of properties for entire home or apartment rental listings on Airbnb and VRBO, which is in line with national averages.

But the 90290 ZIP code in Calabasas and 90265 ZIP code in East Malibu did have higher shares of around 11% and 7% of properties as short-term vacation rentals, respectively.

The 90049 ZIP code encompassing Crestwood Hills had the lowest share of vacation rentals at around half a percent.

UPDATE 12:44 pm ET, 1/19: TikTok shut down access to its site in the U.S. Sunday afternoon ahead of Monday's deadline imposed by a new law banning the Chinese-owned site. But President-elect Trump said he will issue an executive order when he takes office Monday that will give the site a 90-day extention and the site became visible again..

Friday night President Biden was said to be taking a pass on TikTok, leaving it up to incoming President Trump to decide to shut it down, as required by law. But today the Supreme Court upheld the law banning the wildly popular platform if it remains under Chinese ownership.

That apparently leaves no room for executive clemency and means TikTok must go dark Sunday night. An unnamed White House official was quoted Thursday night as saying Biden would delay implementing the measure, leaving it up to Trump, who takes office on Monday.

Such a move by Biden would have delayed the ban's taking effect, leaving it to Trump to say yea or nay. Trump has said he wants to "save" TikTok and was reportedly considering issuing an executive order that would delay implementation of the ban for 90 days.

But the law enacted by Congress and signed by Biden with bipartisan support requires TikTok's Chinese owner, ByteDance, to divest the company or be banned from operating in the U.S.

More than 170 million Americans are registered users of the platform and thousands more are content creators who produce videos and other short bits that keep millions of fans entertained. Those content creators are said to be "terrified" at the prospect of a shutdown, which would put them out of business, at least for awhile. 

The court's ruling turned aside arguments that the ban violates the First Amendment rights of Americans who want to watch the often unusual material that has made TikTok a massive force in entertainment. 

Several justices noted that foreign companies, like TikTok owner ByteDance, do not have any First Amendment rights. Also, the First Amendment protects the right to speak and publish but doesn't specifically protect the recipients of disputed material -- the audience, in other words. 

The fear is that the Chinese-owned company is gathering intelligence that could be used by the Chinese goverment to gather damaging intelligence from those who watch the dancing cat videos and other attractions.

There has been speculation that Trump is forging a path for billionaire Elon Musk to acquire TikTok and merge it into his X, formerly Twitter. If Musk or another American billionaire bought the site before Sunday night, it could presumably stay alive. 

TikTok CEO Shou Zi Chew is expected to attend Trump's inauguration and to have a prime seating location for the ceremonies.  

“We will put measures in place to keep TikTok from going dark,” incoming White House national security adviser Mike Waltz told Fox News on Thursday, noting that the new law allows for an extension preventing it from taking effect “as long as a viable deal is on the table.” 

The Consumer Financial Protection Bureau (CFPB) has ordered American Honda Finance Corporation to pay $12.8 million for reporting incorrect information that harmed the credit reports of 300,000 Honda and Acura drivers.

Honda Finance must pay $10.3 million in redress to consumers and take steps to correct its prior erroneous reporting. It will also assessed a fine of $2.5 million. 

“Honda Finance used sloppy practices that smeared the credit reports of hundreds of thousands of its customers,” said CFPB Director Rohit Chopra. “False accusations on a credit report can have serious implications for Americans seeking a job, housing, or a loan.”

The issue arose when Honda Finance incorrectly reported some customers as delinquent during the COVID-19 pandemic, even though they were on deferral plans. The CFPB also found that Honda Finance failed to properly investigate disputes about their credit reporting.

Honda Finance must pay $10.3 million to consumers and a $2.5 million penalty. The company’s actions caused damage to borrowers’ credit reports, affecting their ability to get loans, jobs, or housing. 

No one is going quietly as the change in administration looms. In the latest, though probably not the last, final maneuver, Texas Attorney General Ken Paxton is suing to block Biden’s effort to ban gas-powered water heaters.

Paxton says it's part of [Biden's] "radical environmental agenda that hurts consumers." Paxton and a multi-state coalition of Attorneys General are challenging the regulation imposed by Biden’s Department of Energy.

On December 26, 2024, the Biden Administration promulgated a final rule that would ban the sale of non-condensing instantaneous natural gas water heaters. Paxton's suit says the rule disproportionally affects seniors and low-income households by limiting market options and forcing consumers to use products that require more energy to perform the same task.

“It makes no sense to ban better performing instantaneous water heaters in the name of ‘green energy’ and force consumers to purchase more expensive and less efficient models. Beyond being ridiculous, it is an unlawful abuse of power,” said Paxton. “Until the final second of Biden’s tenure in Washington, I will defend Texas from the chronic lawlessness of his Administration.”

Environmental groups, including the Natioanl Resources Defense Council (NRDC), say the attacks on the rule are misguided.

"This is a senseless attack on a rule that is good for business and good for the climate,” said Joe Vukovich, staff attorney at NRDC. “The commercial water heater standard promises savings of $149 million per year in operating costs for businesses and will prevent 38 million metric tons of climate-warming carbon emissions over 30 years. We can’t afford to delay this overdue update for water heaters any longer.” 

Paxton joined the multistate coalition led by Georgia, Kansas, and Tennessee to stop the rule from taking effect. In addition to Attorneys General from across the country, the National Propane Gas Association, the National Association of Homebuilders, and the Rinnai Corporation joined the lawsuit.

A phase-out, not a ban

The U.S. Department of Energy (DOE) has not outright "banned" gas water heaters, but it has implemented new energy efficiency standards that may make it more difficult for certain older or less efficient models to be sold.

These new standards aim to reduce energy consumption and greenhouse gas emissions, encouraging the adoption of more energy-efficient technologies like heat pump water heaters and electric water heaters.

While the DOE has not banned gas water heaters, these new standards are part of a broader trend toward promoting cleaner, more energy-efficient alternatives. The DOE's decision aligns with the broader goals of reducing reliance on fossil fuels and improving energy efficiency, with an emphasis on reducing emissions and helping the U.S. meet climate goals.

Gas water heaters use natural gas or propane to heat water, which releases carbon dioxide (CO2) and other greenhouse gases into the atmosphere. Environmental groups say that contributes to climate change and air pollution.

Other advantages of electric water heaters cited by the environmental groups include: 

• Energy Efficiency: While gas water heaters are generally more energy-efficient than electric ones, they still waste some energy. A significant amount of energy is lost in the combustion process, and heat is often lost from the tank itself.

• Health and Safety Concerns: Gas water heaters rely on combustion, which can lead to dangerous issues like gas leaks, carbon monoxide poisoning, and the risk of explosions if the system is not maintained properly. Inadequate ventilation can cause the buildup of harmful gases inside the home.

Considering these issues, many people are opting for alternatives like electric water heaters, solar water heaters, or heat pump water heaters, which can be more environmentally friendly and safer in some situations.

With the Super Bowl just a few weeks away, there’s some exciting news for consumers thinking about how they’ll watch the big game. 

Tubi, the free, ad-supported streamer that's owned by Fox Corporation, will be streaming the game for free on its platform. With Fox hosting the Super Bowl on its networks, the network has announced that the game will also be available for free viewing on Tubi. 

However, this is a first. Fox also had the rights to the Super Bowl in 2023, and the game was only available for broadcast on the direct TV channel or Fox’s website. 

Now, consumers will be able to stream the game for free on Tubi wherever they are on Super Bowl Sunday, 

No subscription is required

To stream the Super Bowl on February 9, there’s no subscription or membership required. Consumers simply need to create an account with Tubi – that asks for only an email address and password. From there, they’ll get free access to the game. 

Football fans will also get access to all of the pregame coverage on Tubi. The streamer has its own pregame show that begins at 3:30 p.m. ET, the Tubi Red Carpet Event, before the game kicks off at 6:30 p.m. ET. 

The stream will be accessible anywhere consumers can access Tubi – on their smart TVs, mobile phones, tablets, computers, etc. 

In addition to Tubi, consumers can access the Super Bowl on the following platforms: local Fox TV channels, Fox Deportes, Telemundo, Fox’s website, and all of the NFL’s digital platforms.