Following the devastating firestorms that destroyed over 12,000 homes and structures in the Los Angeles area, Southern California’s already expensive housing market is expected to become even more competitive. This has left tens of thousands of individuals without housing, leading to reports of rent-gouging. Elected officials have issued warnings against this unethical practice and urge the public to report any property owners who exceed the 10% rent increase cap.
California Attorney General Rob Bonta emphasized the importance of not taking advantage of disaster victims by raising prices unfairly. The state has been facing challenges with housing and homelessness, with efforts underway to create more affordable housing options.
In response to the emergency, California law prohibits price-gouging, limiting increases in prices for goods and services, including rentals, by more than 10%. Violating this law is a misdemeanor and can result in jail time and fines.
Governor Gavin Newsom has extended protections on motel, hotel, and rental housing until March 8. Reports of increased rents in the Los Angeles area have prompted calls for stricter enforcement against rent gougers, with examples shared on social media platforms and through collaborative efforts.
Displaced individuals with insurance can receive assistance for temporary housing, and FEMA offers programs for those affected by the disaster. Mortgage relief measures, including grace periods and waivers of late fees, have been announced by major bank lenders.
Housing platforms like Airbnb and Zillow are also taking steps to prevent price gouging during this crisis, with Airbnb sending reminders to hosts and Zillow implementing safeguards against inflated rental prices.
“Posting ‘important information for renters during a state of emergency’ on area rentals, informing applicants of the law.”
