In the wake of devastating wildfires in the Pacific Palisades and Pasadena/Altadena areas, Los Angeles renters are encountering instances of illegal price gouging. Despite California’s strict laws prohibiting such practices during emergencies, some landlords have significantly raised rental prices, exploiting displaced residents.
One alarming example is a Bel Air property whose monthly rent skyrocketed from $15,900 to $29,500—a staggering 80% increase. Similarly, a property in Encino saw its rent jump from $9,000 to $11,500 after the fires began. Following media scrutiny, the listing price was reduced to $9,800, just below California’s 10% legal limit for rent increases during emergencies.
Real estate professionals have noted a surge in rental listings priced 20% higher than pre-fire rates. Michael Nourmand, a Los Angeles broker, observed that single-family home rentals are being advertised at inflated prices, with landlords capitalizing on the housing shortage caused by wildfire displacement.
Under California law, price gouging is defined as raising the price of essential goods and services, including housing, by more than 10% during a state of emergency. Violators face prosecution, fines, and potential imprisonment. Attorney General Rob Bonta has urged residents to report cases of price gouging to the state’s Department of Justice.
Examples of price gouging extend beyond housing to include hotel rooms and basic necessities like bottled water. Evacuees seeking shelter or essential supplies are encouraged to remain vigilant and report any suspected violations.
California law enforcement is taking the issue seriously. Residents can report cases of price gouging through the state’s dedicated channels, ensuring violators are held accountable. State officials emphasize that protecting displaced families is a priority, especially as wildfires continue to disrupt lives across the region.
The recent fires have left many Angelenos without homes, and efforts are underway to address both the housing crisis and unethical practices in the rental market.
