LOS ANGELES - (INT) - UCLA Anderson Forecast Economic Outlook has found that while the One Big Beautiful Bill Act’s provisions and investments in artificial intelligence have bolstered income for affluent households, those domestic tailwinds are now being challenged by the war in Iran.

The conflict has pushed mortgage rates back up—despite the Federal Reserve’s interest rate cuts—and sent California gas prices to record highs.

Experts are examining whether the Golden State’s housing and labor markets can achieve a meaningful rebound or if their current paralysis will define the remainder of this year.

In an era defined by the permanent shift toward work-from-home lifestyles, the traditional boundaries separating where we live and where we work have dissolved, according to a preview of the outlook.

Story Date: May 12, 2026