PRICE GOUGING: Landlords and property owners in Los Angeles County hike rental prices by as much as 300%
Landlords in Los Angeles County are exploiting wildfire-related displacement by illegally raising rental prices up to 300 percent, violating California’s mandated 10 percent cap on price increases during emergencies.
Real estate platforms like Zillow have removed hundreds of listings violating price gouging laws, but many displaced families are already burdened by predatory rental practices.
Los Angeles County District Attorney Nathan Hochman has warned violators to cease price gouging, refund overcharged tenants or face fines up to $10,000, jail time and public shaming.
Wildfires have worsened Southern California’s housing crisis, with displaced residents facing exorbitant rents and limited housing options, further straining an already unaffordable market.
Price gouging occurs when sellers drastically increase the cost of essential goods or services during emergencies, taking advantage of heightened demand and limited supply. In California, state law prohibits raising prices by more than 10 percent during a declared state of emergency. Yet, in Los Angeles County, some landlords have ignored this law, charging displaced families exorbitant rents for temporary housing. (Related: Los Angeles wildfires leave displaced residents vulnerable to predatory PRICE GOUGING.)
One resident, a retiree named Brian, lost his rent-controlled apartment in the Pacific Palisades after two decades. Now, he fears his pension won’t cover the skyrocketing rents in a city where housing was already unaffordable for many.
Los Angeles County District Attorney Nathan Hochman has issued a stern warning to those engaging in price gouging: Stop immediately and refund overcharged tenants or face criminal charges, civil penalties and public shaming. Violators could be fined up to $10,000 or spend a year in jail.
The problem extends beyond individual landlords. Even luxury real estate mogul Jason Oppenheim, star of the Netflix reality series “Selling Sunset,” has spoken out against the practice. Oppenheim recounted a shocking example of a landlord demanding $23,000 per month for a property originally listed at $13,000.
“There are price gouging laws in California,” he said. “They’re just being ignored right now, and this isn’t the time to be taking advantage of situations.”
Wildfires and price gouging expected to exacerbate Southern California’s housing shortage and crisis
The wildfires have displaced tens of thousands of people, creating a housing crisis within a crisis. With fewer available units and more people competing for them, rents are soaring.
The median rent in Los Angeles is already $2,800 per month, but some displaced residents are being asked to pay double or triple that amount. For families like Erica Lee’s, who lost their home and are bouncing between Airbnbs, the situation is dire.
“My son keeps asking me, ‘When are we going to stop moving?’” Lee said. “And I don’t have an answer for it.”
While authorities crack down on price gouging, the broader issue of housing affordability in Los Angeles remains unresolved. Even before the wildfires, the city was grappling with a homelessness crisis and skyrocketing rents. The disaster has only exacerbated these challenges, leaving many to wonder how the most vulnerable will recover.
The response from the community, however, offers a glimmer of hope. Over 13,000 people have donated more than $6 million to the California Community Foundation Wildfire Recovery Fund. Volunteers and tenant advocacy groups are also stepping up, tracking rental increases and reporting violations to authorities.
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