Burning Homes, Rising Rents: Price Gouging in Southern California

Two months have passed since the devastating wildfires swept through Los Angeles, California leaving behind a landscape marked by both destruction and resilience. In the aftermath, the City of Los Angeles had made tremendous efforts to provide resources to the citizens impacted, and other Angelenos hoping to extend support through initiatives such as LA Strong-Support Wildfire Relief Efforts. Our local communities have demonstrated remarkable solidarity: philanthropic organizations have mobilized relief efforts, volunteers have supported first responders, coordinated excavation and cleanup operations have been initiated, and essential goods have been donated in abundance. The nation, too, has extended its support through large-scale donation campaigns, underscoring a collective commitment to recovery.

​The recent wildfires have not only left a trail of destruction but have also exacerbated the ongoing housing crisis in Southern California. With thousands of homes reduced to ashes and nearly 200,000 residents evacuated, the immediate need for housing has surged dramatically. This sudden demand has spotlighted an unsettling trend: the rapid escalation of rental and property prices in the affected areas. Reports indicate that, within 24 hours of the Palisades Fire, some homeowners and landlords significantly increased rental rates and property prices. This opportunistic behavior of price gouging during a time of collective hardship ​has raised ethical questions about the community's dedication to addressing the longstanding housing crisis. 

Price gouging, defined as raising prices of essential goods and services beyond legally permissible limits during emergencies, has been a significant issue in the aftermath of the wildfires. California law prohibits increasing prices by more than 10% following a declared state of emergency. Despite this, instances of landlords hiking rents by 15% to 20%, and in some cases nearly doubling them, have been documented. In response to these exploitative practices, state authorities have taken decisive action. As reported in the article "Attorney General Bonta Files Charges Against Los Angeles Real Estate Agent, Landlord for Price Gouging in Wake of Eaton Fire," published on February 18, 2025, Attorney General Rob Bonta announced the filing of charges against a Southern California real estate agent and a landlord for price gouging a victim who was evacuated due to the Eaton Fire. The investigation revealed that the defendants increased the rental price by 36%, exceeding the 10% limit established under Penal Code section 396. Governor Gavin Newsom has also reinforced protections against price gouging. In the article "ICYMI: State Continues to Protect LA Firestorm Survivors from Price Gouging," published on February 1, 2025, it is noted that the Governor's executive orders have extended provisions prohibiting price gouging in Los Angeles County for essential goods and services until January 7, 2026. 

Despite these measures, the instinct to capitalize on the misfortune of others reflects a troubling aspect of human nature. While many Southern Californians demonstrated solidarity and compassion, the actions of a few have cast a shadow over these collective efforts. This behavior not only undermines trust within communities but also exacerbates the housing crisis, making it increasingly difficult for displaced residents to secure affordable housing.​ The immediate and substantial rent hikes following the wildfires have left many questioning the sincerity of efforts to mitigate the housing crisis. If, in times of disaster, there are those who prioritize profit over empathy, it suggests a disconnect between public declarations and actual commitments to resolving housing issues. This disparity raises concerns about the effectiveness of current policies and the genuine willingness of all stakeholders to work towards sustainable solutions.​

Individuals who lost their homes in the wildfires have expressed profound distress over the sudden lack of affordable housing. Dr. Jesse Berry, an ophthalmic surgeon in Los Angeles, recounted her experience to People Magazine in a recent tell-all published just last week on March 10th. She candidly shared that,  "We lost nearly everything in the fire. The support from friends, family, and patients has been overwhelming, but finding a new home has been incredibly challenging." This sentiment has been echoed by thousands of victims of the Palisades and Eaton Fires. 

In response to the housing crisis exacerbated by the recent wildfires, grassroots initiatives have emerged to combat unethical practices. The blog Tourched, a new site created by Alissa Walker as a means of bringing attention to the housing crisis in Los Angeles in anticipation of the LA28 Olympic Games has been giving coverage to a particularly captivating story. In her article titled “The Spreadsheet Brigade That's Keeping LA's Rental Market FromExploding", Walker documents the commendable efforts of Chelsea Kirk, a tenant organizer and director of policy and research at Strategic Actions for a Just Economy. Kirk's frustrations with the surging rental market rates sparked her idea to launch the LA Price Gouging Tracker, a crowdsourced spreadsheet documenting rental properties suspected of illegal price hikes. As of mid-January, the tracker listed over 1,300 properties, with approximately 75 volunteers assisting in data collection and reporting. This initiative has been instrumental in holding landlords accountable and deterring further exploitation. Kirk's proactive approach underscores the community's resilience and determination to protect vulnerable residents. By leveraging technology and collective action, these efforts aim to maintain fairness in the rental market during a period of heightened demand and limited housing availability. 

The rapid inflation of rental rates and property prices within such a short period post-disaster is both shocking and disheartening. Exploiting individuals at their most vulnerable moments not only tarnishes the social fabric but also hinders recovery efforts. It is imperative to question the motivations behind such actions and to consider the long-term implications for community cohesion and resilience.​

In response to these challenges, state and local governments have implemented measures to protect residents. As highlighted in the article "Los Angeles to Crack Down on Rent Gouging with Fines Up to $50,000," published on February 6, 2025, Los Angeles County lawmakers have increased fines for rent-gouging violations from $10,000 to $50,000. This decision underscores the severity with which local authorities view these violations and their commitment to deterring such exploitative practices. 

Despite these measures, the persistence of price gouging incidents highlights a deeper issue: the gap between rhetoric and action in addressing the housing crisis. While policies and protections are in place, their enforcement and the community's adherence to ethical practices remain inconsistent. This disparity suggests that, for some, the drive for profit outweighs the collective goal of ensuring affordable and fair housing for all.​ The recent wildfires have illuminated both the strengths and vulnerabilities within Southern California communities. While the collective response showcased remarkable unity and compassion, the instances of price gouging serve as a stark reminder of the challenges that persist in addressing the housing crisis. It is incumbent upon all stakeholders—government entities, community organizations, and individuals—to reflect on these events and to reaffirm their commitment to fostering an equitable and supportive environment for all residents, especially in times of adversity.​