Landlords in fire-ravaged Los Angeles have jacked up rents — in some cases by more than double the price — in violation of California law against price gouging as thousands of residents seek shelter.
By law, landlords are not permitted to raise the price of housing by more than 10% after a state of emergency has been declared.
But a search of local listings and horror stories from realtors show that many opportunistic landlords are openly flouting the law after the wildfires destroyed entire communities. Some 12,000 structures, from Malibu to Pacific Palisades to Altadena, have been left in ruins.
Samira Tapia, a Los Angeles-based real estate agent, told the New York Times that her review of more than 400 listings found that almost 100 properties had rents raised beyond the 10% threshold.
One rental property in North Hollywood jumped overnight by $800, to $5,700 a month, she told the outlet.
In one extreme case, a five-bedroom home in Santa Monica, listed at $12,500 per month last February 2024, was recently relisted for $28,000 per month — a 124% increase, according to Inside Edition reporter Lisa Guerrero.
Laura Kate Jones, another LA-based realtor who is looking for a home for a client whose Pacific Palisades property was destroyed in the wildfires, found that rents for several properties in West LA surged by between 15% and 20% overnight.
One listing agent raised the rent by $3,000 during one tour, she said.
“People are so panicked and desperate to get into a house right now that they’re just throwing money into the wind,” Jones told the Times.
“People taking advantage of this. It’s horrendous.”
Chelsea Kirk, director of policy and advocacy at Strategic Actions for a Just Economy, compiled a crowdsourced spreadsheet that includes addresses, Zillow links, dates of rent increases and exact pre- and post-hike prices.
Among the listings that stands out is a 9,615-square-foot Tudor mansion in Bel Air. The home was listed at $29,500 per months in December.
But last week the listing reappeared with a new price — $39,000 per month.
Even the price for smaller, more affordable properties has soared. A 1,200-square-foot, two-bedroom home in Woodland Hills that was listed for $3,900 in November is now priced at $5,900, according to Yahoo News.
The exorbitant demands for housing come despite California Gov. Gavin Newsom declaring a state of emergency last Tuesday, invoking anti-price gouging laws to curb opportunistic rent hikes.
Real estate professionals and housing advocates urged state authorities to enforce price gouging laws aggressively.
Jason Oppenheim, of Netflix’s “Selling Sunset,” has publicly condemned the practice, describing it as “illegal and immoral” during a crisis.
California Attorney General Rob Bonta has also vowed to investigate violations and impose penalties including fines up to $10,000 and imprisonment.
Los Angeles Mayor Karen Bass, whose response to the blaze has been fiercely criticized, announced Sunday that the city had launched “a new, simple intake system” to report price gouging.
“Call @MyLA311 to report illegally hiked rents and prices,” Bass posted on X. “We have no tolerance for it.”