LA Renters Hit by Big Price Increases During Wildfire Chaos

Los Angeles landlords have been accused of taking advantage of devastating wildfires after raising rents for in-demand properties by tens of thousands of dollars.

Newsweek California Attorney General Rob Bonta’s office has been reached for comment via email.

Why It Matters

The price increase of more than 10 percent after an emergency was declared illegal in California. The reported increases suggest that these laws are being ignored over time during the urban crisis.

What To Know

Los Angeles-based news outlets are reporting that home rental prices are rising as fast as ten thousands of people were displaced because of wildfires.

Governor of California Gavin Newsom announced that the state’s price-gouging laws would go into effect on January 7 after he declared a state of emergency. Wildfires in Los Angeles have left at least 16 people dead and thousands of properties destroyed.

California Attorney General Rob Bonta warned that price increases beyond 10 percent during an emergency are illegal in a press conference on Saturday. He added that he will work with Newsom to address the issue of the dramatic increase in rent prices.

News outlet LAist found a property in Bel Air listed on Zillow for $29,500 per month on January 11.

This is nearly double the $15,900 per month the property was listed for in September 2024. The listing was later taken down as a family moved out, LAist reported.

the Los Angeles Times found a property in Encino that was previously listed for $9,000 a month on January 3. After the fires started, it was on Zillow for $11,500.

Listing agent Soheila Mirfakhrai said the price was lowered immediately after speaking to 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 advertised online at about 20 percent higher than they would have been if the wildfires hadn’t happened.

Nourmand said that even with rental prices ranging from $15,000 to $20,000 per month, landlords are “getting it—and fast.”

Jason Oppenheim, a Los Angeles real estate agent who stars in a reality show Selling at sunsetspoke to BBC he knows of one landlord who turned down an offer for a place that used to cost $13,000 for $20,000 a month because the owner wanted $23,000.

What People Are Saying

Anya Lawler, a policy advocate at the California Rural Legal Assistance Foundation, told the Los Angeles Times: “My guess is that there are some landlords who are legitimately ignorant of the law and are just motivated to get as much as they can to take advantage of a terrible situation.

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 ahead. The landlord said, ‘No, I want $23,000 a month.’ There are price gouging laws in California; this is not the time to take advantage of situations, and it is also illegal to take advantage of a natural disaster.

California Attorney General Rob Bonta said during a press conference on Saturday: “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 an increase higher than before the emergency by 10 percent , that’s against the law. If you’re a mom-and-pop landlord and you don’t know these laws, now you know ignorance is not an excuse.

What Happened Next

California’s rate hike protections will remain in place until early February following the declaration of a state of emergency, but they could be extended.

The National Weather Service has extended a red flag warning, indicating that hot temperatures and strong winds will increase fire danger throughout the Los Angeles area through Wednesday night.