This blog post examines the surge in illegal rent and short-term rental price hikes that followed the devastating Los Angeles wildfires in January. It explores the weak enforcement of California’s emergency rent caps and the grassroots and governmental responses aimed at preventing such exploitative practices in future disasters.
It highlights the human impact on displaced renters and the role of platforms like Airbnb. The article also discusses the policy gaps that allow price gouging to persist in strained housing markets.
What happened after the Los Angeles wildfires
In the immediate aftermath of the January wildfires that destroyed at least 10,000 homes around Los Angeles, displaced residents faced dramatic increases in housing costs. Average rents in the L.A. area rose 20% within two weeks of the fires, despite state law capping emergency rent increases at 10%.
Short-term rental platforms were a major vector for overcharging: more than 2,000 Airbnb listings reportedly exceeded legal caps. Many landlords and brokers took advantage of the sudden surge in demand.
How enforcement fell short
The enforcement response exposed critical weaknesses. California Attorney General Rob Bonta issued over 750 warning letters, yet only four lawsuits were filed at the state level.
Los Angeles County’s district attorney filed none. This mismatch between warnings and legal action left many victims without effective remedies.
Why price gouging during disasters is so damaging
When landlords can raise rents beyond legal limits after a disaster, the consequences extend far beyond short-term hardship. Disaster-driven rent spikes often trap survivors into unaffordable, long-term leases, increasing the risk of eviction, housing instability, and bankruptcy.
This is especially true for low-income renters who lack savings or alternative housing options. Similar spikes occurred after the 2018 Camp Fire, the 2021 Marshall Fire, and the 2023 Maui wildfires.
In every case, the most vulnerable populations bore the brunt.
Key figures and grassroots responses
Tenant advocates moved quickly to fill the accountability gap. The Rent Brigade crowdsourced more than 1,500 documented examples of alleged illegal rent hikes and pressured officials and platforms to act.
These citizen-led efforts were instrumental in pushing local authorities to consider stronger enforcement tools. In response, the L.A. County Board of Supervisors approved a new administrative enforcement system that allows fines up to $1,000 per day for price gouging during emergencies.
This represents a meaningful shift toward deterrence, but one with an expiration date.
Policy gaps and the road ahead
Despite the new county system, the temporary price-gouging ban is set to expire at the end of August. Experts warn that vague state statutes and limited enforcement capacity make it easy for unscrupulous landlords and platforms to exploit crises.
This effectively normalizes gouging in already tight markets.
Practical steps to strengthen protections
From my three decades in housing policy and disaster response, several pragmatic measures can reduce future exploitation:
Here is the source article for this story: Illegal price-gouging is rampant after disasters. Can it be stopped?