Southern California’s housing market is expected to become more competitive after recent wildfires destroyed over 12,000 homes and structures in the Los Angeles area, leaving tens of thousands of people displaced.
Reports of rent-gouging have already emerged, prompting officials to warn against the practice and urge the public to report landlords who raise rents above the legally allowed 10% cap during a state of emergency, according to the Associated Press.
California Attorney General Rob Bonta said, “You cannot jack up prices and take advantage of disaster victims, plain and simple.” He emphasized that it is illegal for landlords to accept rent that exceeds the cap, even if someone offers to pay more.
Examples of potential rent-gouging include a downtown LA condo that was listed at $5,500 per month in October but recently reappeared on Zillow with an asking rent of $8,500, and a house in Encino that was seeking $12,000 per month in December but was re-listed in January at $14,000. Both listings were subsequently removed.
FEMA provides assistance to displaced residents, including short-term stays at participating hotels and motels, as well as cash advances for housing through its displacement and rental assistance programs. Homeowners may also be eligible for mortgage relief from five major bank lenders, which have agreed to provide a 90-day grace period on mortgage payments and other concessions.
Short-term rental platforms like Airbnb and Zillow are taking steps to prevent hosts from raising prices above the legal limit during the state of emergency.
