Google searches for rental homes in the Los Angeles area have jumped by a staggering 186 percent in California since the first week of January, according to a new report by Redfin, as tens of thousands of displaced residents look for a place to stay.
According to the real estate brokerage, rents in the Los Angeles area have already started rising following the brutal fires which destroyed entire neighborhoods in Southern California.
Why It Matters
Firefighters were still battling the blazes on Wednesday night, eight days after the two main fires—Palisades and Eaton—started and spread across the region, fueled by strong winds. The fires, which are now partially contained, have burned through nearly 40,000 acres, killing at least 25 people and destroying thousands of structures, including many homes.
At least 100,000 people have been displaced; many have lost their homes. The need for housing of the residents affected by the fires is likely to send rent and home prices in Southern California spiraling in the coming days and weeks, as the state’s chronic shortage of housing exacerbates the issue.
What To Know
Officials in California have warned locals of price gouging following the devastating fires still burning through the region, with landlords and property managers increasing rent beyond what’s considered reasonable as demand grows.
“We should not be engaged in price gouging, whether it’s groceries or rent,” California Attorney General Rob Bonta said during a press conference on Sunday, adding that his office has received reports of rental units charging too much. “We are very serious about this, and the governor’s office, on ensuring that there is no price gouging and that anyone engaged in it is held accountable.”
Under California law, businesses are only allowed to increase prices by up to 10 percent over the previously advertised price during an emergency; in the case of the Los Angeles fires, an emergency declaration was made on January 7. Those who exceed this limit can receive up to a year in county jail and/or a fine up to $10,000.
For rentals that were not previously advertised, the asking price cannot exceed 160 percent of the fair market rent (FMR) established by the U.S. Department of Housing and Urban Development (HUD). The FMR depends on the bedroom size of the rental unit.
Bonta said anyone who’s a victim of price gouging should report it to local authorities or the attorney general’s office.
There have already been reports of local families turning away from enormous rent hikes. Trader and investor Joe Thompson, 44, told NBC that he was looking at a five-bedroom home in Santa Monica, California, which was put on the market for $28,000 a month—double what the agent asked a year before.
While Thompson, who owns a home in Pacific Palisades, turned away from the property, where the agent asked for three months rent up front, the home had multiple offers already—showing that some, in a desperate situation, are willing to pay such an inflated price.
On Sunday, California Governor Gavin Newsom signed an executive order that extended laws “prohibiting price gouging in times of emergency” until January 7, 2026, for Los Angeles County.
What People Are Saying
California State Assemblymember Jacqui Irwin said at a press conference on Sunday: “This is absolutely unacceptable and illegal to do in the face of this horrible tragedy.”
Los Angeles County Sheriff Robert Luna said during a press conference on Sunday: “Anyone taking advantage of anyone who’s been victimized already, whether it is burglary, looting, or any other crime, whether it’s a scam of some kind that you’re conjuring up to make money off of the poor people that have been involved in this.”
In a statement shared with several media, Zillow said: “If renters see a potential violation, we encourage them to report the listing to Zillow and California authorities. We believe it is essential for housing providers to follow local housing rules, including consumer protections against price gouging during and following a natural disaster, and we are providing resources to help them understand their responsibilities.”
What Happens Next
It will take days and weeks to estimate the full scope of the damages caused by the Los Angeles fires. However, analysts expect it to be one of the largest wildfire insured losses in U.S. history. Private forecaster AccuWeather estimated the damages and economic loss to be between $250 billion and $275 billion.
For the tens of thousands of residents displaced, the risk is that the state’s housing crisis might only get worse. The Los Angeles housing market, which is already among the most expensive in the nation, is expected to get even more costly as demand grows and inventory doesn’t.
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