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Wednesday, Sep 03, 2025

Los Angeles Residents Displaced by Wildfires Encounter Rising Rental Costs

Los Angeles Residents Displaced by Wildfires Encounter Rising Rental Costs

Victims of wildfires have noted a considerable rise in rental prices due to increased demand, leading to government actions aimed at preventing price gouging.
LOS ANGELES, Jan 17, 2025 — Thousands of people in Los Angeles, displaced by the Palisades Fire that destroyed or damaged around 5,000 homes, are encountering significant difficulties in finding temporary housing.

The devastation has led to a sharp rise in rental prices, with many tenants experiencing sudden cost increases as demand surpasses supply.

Increased Rental Rates and Accusations of Price Gouging
Across the region, reports indicate a notable hike in rental prices, with some properties showing increases of up to 29%.

Jay Gilberg, whose five-bedroom home in Pacific Palisades was lost, recounted facing rental price surges while searching for temporary housing for his family.

A property in Beverly Hills, previously listed at $14,000 per month, saw a $4,000 overnight increase.

Gilberg's real estate agent was told the hike was due to market 'supply and demand.'

The Los Angeles Tenants Union, advocating for affordable housing, has documented over 500 instances of sharp rent increases since the disaster, with some rates more than doubling.

The union has raised awareness of renters' struggles, highlighting that many displaced individuals are already financially burdened.

Government Actions Against Price Gouging
In response to these reports, California Governor Gavin Newsom signed an executive order capping price hikes on essential goods and services, housing included, to no more than 10% above pre-disaster levels.

Violations of this order are illegal and subject to legal action.

California Attorney General Rob Bonta noted that his office received hundreds of complaints about opportunistic pricing and announced investigations into several cases.

'This is unconscionable behavior at a time when support, not exploitation, is needed,' Bonta said, urging residents to provide evidence of price gouging to support prosecutions.

Personal Struggles
Many fire-affected residents are finding it hard to secure housing.

Renee Weitzer, an 87-year-old Holocaust survivor, and her husband Ed, 88, lost their Sunset Mesa home to the blaze.

Even after offering $14,000 per month—far above the $8,000 listing—and a year’s rent upfront, they couldn't secure a rental property.

The couple has since moved into a relative’s one-bedroom apartment as they deal with insurance claims and future plans.

Other victims have voiced frustration over additional financial pressures, such as application fees and credit checks.

Real estate agents like Lori Goldsmith have criticized landlords who try to profit from the disaster.

'These individuals have lost every memory and piece of stability,' Goldsmith said.

Wider Implications
The Palisades Fire is one of many recent wildfires ravaging communities in California, worsening existing housing shortages in the state.

Local officials, including Los Angeles County Supervisor Lindsey Horvath, are committed to addressing the issue of price gouging.

'People are suffering and need assurance that they will be protected from exploitation,' Horvath stated during a visit to a FEMA disaster recovery center.

Ongoing Challenges for Displaced Individuals
As displaced residents continue their search for housing, competition remains fierce.

Many families and individuals endure prolonged uncertainty about their ability to rebuild or find stable housing.

The long-term effects of the wildfire on the housing market and affected communities have not yet been fully realized, with recovery efforts anticipated to last for years.
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