The Southern California housing market is expected to become more competitive due to the devastating firestorms that destroyed over 12,000 homes and structures in the Los Angeles area. This has left tens of thousands of people without housing. Reports of rent-gouging have surfaced, leading elected officials to warn against the practice and urge the public to report unethical property owners who raise rents above the permitted 10% cap.
California Attorney General Rob Bonta emphasized that exploiting disaster victims by increasing prices is unacceptable. For example, a three-bedroom condo in downtown LA was listed for $5,500 a month in October but resurfaced this week on Zillow with a new rent of $8,500 before being removed on Saturday.
California law prohibits price-gouging after an emergency is declared, with violations punishable by jail time and fines. Governor Gavin Newsom extended protections on housing rentals until March 8 to prevent exploitation.
Tenant and landlord associations are calling for strict enforcement against rent gouging in the Los Angeles area, with reports of exorbitant price increases circulating on social media. FEMA provides assistance to displaced individuals for temporary housing, including reimbursement for lodging expenses not covered by insurance.
For homeowners, major banks have agreed to offer mortgage relief, such as a grace period on payments and foreclosure moratoriums. Housing platforms like Airbnb are enforcing anti-gouging measures, with hosts who inflate prices receiving error messages.
Overall, efforts are being made to prevent exploitation of those affected by the firestorms and ensure access to fair housing in Southern California.
Posting “Important Information for Renters During a State of Emergency” on rental listings, notifying prospective tenants of their rights under the law.
