*Landlords in Los Angeles are facing accusations of price gouging by significantly increasing rents for high-demand properties amid the ongoing wildfires.
Despite California laws prohibiting price hikes over 10% during emergencies, some landlords are doubling rents or raising prices by 20%, exploiting the wildfires to maximize profits. The Los Angeles wildfires, which have caused at least 16 fatalities and damages projected to exceed $50 billion, have led to accusations of landlords capitalizing on the devastating disaster, Newsweek reports.
Governor Gavin Newsom declared a state of emergency on January 7, triggering these laws, while Attorney General Rob Bonta emphasized that such increases are illegal.
“Some of our hotels and some of our landlords use algorithms based on demand and supply to set their prices,” Star real estate agent Jason Oppenheim told the BBC. “If those prices lead to increases higher than before the emergency by 10 percent, that’s against the law. If you’re a mom-and-pop landlord and you’re not aware of these laws, now you are aware. Ignorance is not an excuse.”
California Attorney General Rob Bonta told reporters at a press conference: “Some of our hotels and some of our landlords use algorithms based on demand and supply to set their prices. If those prices lead to increases higher than before the emergency by 10 percent, that’s against the law. If you’re a mom-and-pop landlord and you’re not aware of these laws, now you are aware. Ignorance is not an excuse.”
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Here’s more from Newsweek:
News outlet LAist found that one property in Bel Air was listed on Zillow for $29,500 per month as of January 11.
This is nearly double the $15,900 per month that the property was listed at in September 2024. The listing was later removed as a family had moved in, LAist reported.
The Los Angeles Times found a property in Encino that was previously listed at $9,000 a month on January 3. After the blazes started, this was then on Zillow for $11,500.
Listing agent Soheila Mirfakhrai said the price was then lowered after speaking to the Los Angeles Times to $9,800 per month, just below the 10 percent threshold.
The Los Angeles wildfires, fueled by dry, windy conditions and the Santa Ana winds, have burned over 40,000 acres, and destroyed numerous homes, and historic/significant landmarks, marking a record-breaking disaster for California.
“My guess is there are some landlords who legitimately don’t know the law and are simply motivated to get as much as they can to take advantage of a terrible situation. Others are well aware and simply think they can skirt enforcement,” Anya Lawler, a policy advocate with the California Rural Legal Assistance Foundation, told the Los Angeles Times.
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