The devastating wildfires in Los Angeles County have destroyed over 12,000 structures, leaving thousands of families displaced and scrambling for new homes. As demand for rentals surges, a secondary crisis has emerged: rental price gouging. Some landlords have reportedly increased rents by as much as 100%, intensifying the struggles of residents already dealing with tremendous loss.
An Already Stretched Market Overwhelmed
Demand Skyrockets Post-Fires
Josh Altman, a celebrity real estate broker, described the rental market as “uncharted waters.” His company signed 1,500 new rental customers in the past month, a dramatic increase driven by families left homeless by the fires.
“The phone has not stopped ringing,” Altman shared. “We’ve signed $250 million worth of listings in just a week—normally, that takes a month and a half.”
Examples of Price Hikes
Jay Gilberg, who lost his Pacific Palisades home, highlighted the issue with a shocking example. A Beverly Hills rental was listed at $14,000 per month one day, only to be re-listed at $18,000 the next—a 30% overnight jump.
“There are good people trying to help, but others are seeing this as an opportunity to profit,” Gilberg told reporters.
California’s Response to Price Gouging
Governor Newsom’s Executive Order
On January 16, 2025, Governor Gavin Newsom signed an executive order limiting rent increases in Los Angeles County to 10% through March 8, 2025. This emergency measure applies to both existing leases and new rental agreements.
Penalties for Violators:
- Jail time.
- Hefty fines and civil penalties.
California Attorney General Rob Bonta has launched investigations into hundreds of reports of price gouging.
Creative Workarounds by Landlords
Despite the executive order, some landlords have found ways to bypass the 10% cap:
- Listing properties off-market.
- Ignoring the new restrictions entirely.
- Using deceptive pricing tactics, such as “flexible” rates.
Altman noted, “There’s a growing list of over 2,000 units where prices were raised between late December and January. It’s very obvious, and it’s not something you can hide.”
The Impact on Families
Displacement and Affordability Issues
For families already grappling with the loss of homes and belongings, finding affordable housing has become nearly impossible. With rents skyrocketing, many are forced to make tough decisions about where—and how—to rebuild their lives.
Altman emphasized the scale of devastation: “I walked through the Palisades and Malibu. It’s 100 times worse than what you see on TV. Neighborhoods are completely gone.”
How Residents Can Fight Back
Attorney General Rob Bonta has called on the public to report incidents of price gouging. Residents are encouraged to submit evidence such as:
- Text messages or emails.
- Screenshots of rental listings.
- Copies of lease agreements showing sudden price hikes.
Resources for Families
- Legal Aid Organizations: Provide guidance and support to those facing price gouging.
- Relief Funds: State and federal programs are offering assistance to displaced residents.
- Evacuation Centers: Some are working to secure temporary housing options.
A Market in Chaos
Altman highlighted the long-term implications of the crisis. While some landlords refuse to engage in exploitative practices, others are taking advantage of desperate renters, further destabilizing an already chaotic rental market.
The combination of extreme demand, predatory practices, and California’s housing shortage underscores the need for robust enforcement of anti-gouging measures.
Conclusion
As California battles the fallout of the wildfires, the rental market has become a new battlefield for displaced residents. While Governor Newsom’s executive order provides temporary relief, reports of landlords circumventing the law highlight the challenges of enforcing fair practices during a crisis. For thousands of families, finding an affordable place to call home remains a daunting challenge.
