As Los Angeles residents flee devastating fires, some landlords are dramatically hiking rent prices, prompting investigations and stern warnings from officials.
A crowdsourced effort led by Los Angeles Tenants Union housing advocate Chelsea Kirk has documented multiple instances of apparent price gouging on Zillow. The most extreme case showed a Santa Monica property at 1812 Navy St. jumping from $12,750 to $28,000 monthly—a 119.6% increase—before being removed from the platform.
During the current state of emergency, landlords are prohibited from increasing rental prices by more than 10% above previously advertised rates.
"The price gouging is particularly despicable because these are people who are basically looking at this situation and saying, 'How can I make the most amount of money from people who are desperately seeking housing supplies,'" District Attorney Nathan Hochman said. He urged violators to "stop it immediately" and refund overcharged amounts to avoid prosecution.
Supervisor Lindsay Horvath confirmed that both criminal and civil penalties are being enforced under the countywide emergency declaration. "We are taking these instances seriously, and there will be consequences," Horvath said, noting that the governor has issued a new executive order addressing the issue.
Other documented cases include a Virginia Avenue property that increased from $19,800 to $35,000 monthly—a 76.8% jump—and multiple Venice listings showing significant hikes.
The price gouging crackdown comes as officials deal with widespread looting and arson in evacuation zones. Hochman announced charges against 10 individuals Monday, including nine for looting and one for arson, with potential sentences ranging from six years to life in prison.
"If prices look really out of whack, report it to us," California Attorney General Rob Bonta told KCAL News. "We'll hold folks accountable and enforce if necessary."
Supervisor Lindsay Horvath said the County has passed an emergency declaration that includes prohibitions on gouging housing.
“I spoke with our Attorney General of the State this morning, who is vigorously investigating cases at his level,” she said. “We are taking these instances seriously, and there will be consequences under our county emergency.”
Hochman acknowledged price gouging has a more insidious cousin with bidding wars driving up prices in a way that may be impossible to stop.
“So here's how bidding wars work. If a landlord or someone who's renting out a particular house or room had an original price before the wildfires in the state of declaration occurred, and keeps that original price, but others give him or her additional money to rent, and they take absolutely no action whatsoever to in any way increase that price. Then it falls in a gray area. I don't want to say it is 100% legal, but it is a gray area,” he said. “But if the landlord or the renter or the person renting, goes ahead and engages in a discussion amongst different people as to which price they're going to take, that is more than 10% ahead, they're engaging in price gouging. So again, what I would strongly, strongly urge anybody who's renting or selling or providing a service is that if you receive more than 10% of the amount that you would have received before these wildfires, you are now entering into the world of price gouging. Your case will get looked at, and if you are found guilty of it you will be prosecuted.”
Horvath said residents can report price gouging or other predatory practices at oag.ca.gov/report, or you can call 800-590-3822. Residents can also report suspected price gouging to the California Attorney General's office at oag.ca.gov/report or by calling 800-590-3822.
