Landlords in Los Angeles have been accused of exploiting the devastating wildfires after hiking up rents for in-demand properties by thousands of dollars.
Newsweek has contacted California Attorney General Rob Bonta’s office for comment via email.
Why It Matters
Price gouging by more than 10 percent after an emergency has been declared is illegal in California. The reported hikes suggest these laws are being ignored during a time of crisis in the city.
What To Know
Los Angeles-based news outlets are reporting that rental housing prices are sharply rising as tens of thousands of people are displaced due to the wildfires.
California Governor Gavin Newsom announced that state price-gouging laws would be implemented on January 7 after he declared a state of emergency. The Los Angeles wildfires have left at least 16 people dead and thousands of properties destroyed.
California Attorney General Rob Bonta warned that price gouging beyond 10 percent during an emergency is illegal during a Saturday press conference. He added he would be working with Newsom to address the issue of dramatically increasing rent prices.
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.
Real estate broker Michael Nourmand told the Los Angeles Times that estimates for single-family rentals are being advertised online at around 20 percent higher than they would have cost if the wildfires had not broken out.
Nourmand said that even with rent prices ranging from around $15,000 to $20,000 per month, landlords are “getting it—and quickly.”
Jason Oppenheim, a real estate agent in Los Angeles who stars in the reality show Selling Sunset, told the BBC he was aware of a landlord who rejected an offer for a place previously worth $13,000 for $20,000 a month because the landlord wanted $23,000.
What People Are Saying
Anya Lawler, a policy advocate with the California Rural Legal Assistance Foundation, told the Los Angeles Times: “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.”
Star real estate agent Jason Oppenheim told the BBC: “I had a client. We sent him to see a house that was asking $13,000 a month. He offered $20,000 a month and offered to pay six months up front. The landlord said, ‘No, I want $23,000 a month.’ There are price gouging laws in California; they’re just being ignored right now. This isn’t the time to take advantage of situations, and it’s also illegal to exploit a natural disaster.”
California Attorney General Rob Bonta said during Saturday’s 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.”
What Happens Next
California’s price gouging protections will remain in place until early February following the declaration of a state of emergency, but they can be extended.
The National Weather Service has extended the red flag warning, indicating that warm temperatures and strong winds could increase fire danger across the Los Angeles area through Wednesday evening.
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