The costly housing market in Southern California is expected to become more competitive following the devastating firestorms that destroyed over 12,000 homes and structures in the Los Angeles area, leaving many displaced. Reports of rent-gouging have emerged, leading elected officials to issue warnings against such practices and urging the public to report unethical landlords who exceed the 10% cap on rent increases.
California Attorney General Rob Bonta emphasized, “You cannot exploit disaster victims by hiking up prices.” For instance, a three-bedroom condo in downtown LA that was initially priced at $5,500 a month saw a sudden increase to $8,500 before the listing was taken down.
California law prohibits price-gouging after a state of emergency is declared, with penalties of up to a year in jail and fines of $10,000 per violation. Protections against housing-related price-gouging typically last for 30 days, but Governor Gavin Newsom extended these restrictions for motel, hotel, and rental housing until March 8.
Tenants rights and landlord associations are pushing for strict enforcement against rent gougers amidst reports of exorbitant price hikes. Social media users are sharing examples of inflated rents, with some properties exceeding the 10% cap.
FEMA offers assistance to displaced individuals with insurance coverage for temporary hotel or rental stays. The agency provides various programs for displaced residents, including short-term lodging at participating establishments and financial aid for housing through displacement and rental assistance.
Homeowners affected by the fires can benefit from mortgage relief programs announced by Governor Newsom’s office, which include a grace period on mortgage payments, waiver of late fees, and a moratorium on new foreclosures from major banks such as Bank of America and Wells Fargo.
Housing platforms like Airbnb are taking steps to prevent price-gouging, with hosts in Los Angeles and Ventura counties receiving alerts if they attempt to increase prices by more than 10%. Zillow is also committed to supporting anti-gouging efforts during emergencies.
Posting “important information for renters during a state of emergency” on area rentals, informing applicants of the law.
