'it's Horrendous': Los Angeles Rental Prices Surge During Fires Despite Price Gouging Laws

At slightest 24 group personification died and thousands of structures personification been destroyed successful nan fires that proceed to pain successful Southern California. There are astatine slightest 105,000 nether mandatory removal orders, and 87,000 overmuch personification been issued removal warnings.

With truthful galore group displaced, rentals are being scooped up—and contempt laws aimed astatine preventing worth gouging, costs are astatine a premium.

The New York Times recovered listings successful various Los Angeles neighborhoods pinch monolithic worth jumps, from 15 percent successful Century City to 64 percent successful Venice. One existent spot supplier told nan outlet, "People [are] taking advantage of this. It's horrendous."

Inside Edition journalist Lisa Guerrero recovered this five-bedroom successful Santa Monica, which was listed connected January 10 astatine $28,000 a play (the fires started connected January 7). Its past listing worth was $12,500 successful February 2024. Nationwide, rental prices accrued by astir 3.3% from October 2023 to October 2024.

— Lisa Guerrero (@lisaguerrero.bsky.social) January 11, 2025 astatine 6:32 PM

Experts told MarketWatch that rents successful L.A. could summation by 8% to 12%, which is not excessively acold disconnected from nan state's anti-price gouging laws —the authorities of emergency declaration says prices can't summation overmuch than 10% compared to pre-disaster prices, including connected housing.

"Doubling of maturation aliases tripling of rent maturation is perfectly possible," Selma Hepp, main economist astatine CoreLogic, told MarketWatch.

Related: Is One Company to Blame for Soaring Rental Prices successful nan U.S.?

The norm hasn't stopped immoderate rental listings from skyrocketing bully supra nan 10% cap, however.

The Los Angeles Times highlighted occurrence victims competing for rentals, pinch prices expanding almost 30% successful conscionable a less days. One listing had 10,000 views connected Redfin successful conscionable 1 hour. If you don't locomotion a batch of clip looking astatine listings, that is simply a lot.

LAist recovered respective listings that look to show awesome worth hikes aft nan fires began. When contacting nan realtors to inquire if they were alert of nan norm preventing these kinds of increases, 1 texted back: "Supply & demand."

Related: A Kroger Exec Reportedly Testified that nan Supermarket Giant Raised Prices of Milk and Eggs Beyond Inflation Costs