Unlawful Price Increase Prevalent in Aftermath of Disasters. Los Angeles Fires Provide Evidence of This Problem
After the devastating wildfires that ravaged the Los Angeles area last January, a wave of activism and government response aimed to curb excessive rent hikes and price gouging in housing.
The fires, which incinerated entire neighborhoods and destroyed at least 10,000 homes, led to a surge in housing prices, with rents increasing by about 20%. This triggered tenant advocacy and a successful campaign to impose stricter regulations and enhanced enforcement against price gouging in housing.
California, known for its clear anti-price gouging laws, enforces a cap on rent increases limiting hikes to no more than 10% post-disaster. However, enforcement is typically minimal due to regulatory grey areas and the challenges of monitoring every case swiftly after disasters.
In response, the government stepped up its efforts, with California Attorney General Rob Bonta suing Kushins and Baronet-Israel for price-gouging, citing a state law that makes it a crime to raise prices for food and shelter during an emergency by more than 10%. Despite sending over 750 warning letters to potential price gougers, Bonta has not obtained a conviction.
Meanwhile, the city attorney of Los Angeles has filed a few lawsuits, including against Airbnb, which allowed users to raise prices above legal limits on more than 2,000 properties, despite its assurances that it would block such behavior.
Blanca and her husband, who moved back to their damaged complex after being unable to find affordable housing elsewhere, lived in the complex for months paying rent in unsafe conditions. They are not alone; thousands of displaced Angelenos struggled to find affordable housing in a tight rental market. Some property owners and real estate agents increased rental prices significantly, taking advantage of the surge in demand.
Local officials are now trying to step up enforcement with a new system for penalizing price spike activity, potentially reaching up to $1,000 per day in fines. However, legal nonprofits say they can't pick up the slack because they need a named victim to sue a landlord.
In addition to stricter regulations, legislative efforts provide direct financial relief to affected homeowners. The Mortgage Relief for Disaster Survivors Act, introduced by Senators Adam Schiff and Michael Bennet, offers 180 days of mortgage forbearance (with a possible 180-day extension) for homeowners in federally or state-declared disaster areas.
Improving housing resilience and insurance affordability is another policy angle to reduce vulnerability and economic shocks post-disasters. Programs like Florida’s My Safe Florida Home or Maine’s Home Resiliency Grant incentivize retrofits or rebuilding to higher standards that can lower insurance costs and reduce damage, indirectly mitigating post-disaster housing market shocks and speculative pricing spikes.
Despite these efforts, enforcement challenges remain prominent. The inability to adequately monitor and respond immediately during emergencies allows some landlords and merchants to exploit regulatory grey areas. Increasing awareness, clearer statutory language, and stronger enforcement resources are essential to effective regulation.
In sum, examples of stricter housing price regulations post-disaster include California’s 10% rent hike cap after emergencies, various states with anti-price gouging laws, legislation providing mortgage relief to reduce financial strain and indirectly stabilize housing, and programs encouraging resilient building standards to reduce recovery costs and market pressure.
Key sources:
- Anti-price gouging laws and enforcement issues after L.A. wildfires, 2025: [1]
- Mortgage forbearance legislative relief for disaster survivors, 2025: [2]
- Resiliency programs lowering insurance and rebuilding costs: [3]
[1] Dawn Smith, a displaced resident, found a smaller place in Sherman Oaks for $7,800, more than triple what she was paying before the fire. [2] The city attorney of Los Angeles has filed a few lawsuits, including against Airbnb, but the district attorney for Los Angeles County has not filed a single price-gouging case. [3] After the wildfires, thousands of displaced Angelenos struggled to find affordable housing in a tight rental market. [4] Some property owners and real estate agents increased rental prices significantly, taking advantage of the surge in demand. [5] Local officials in Los Angeles are now trying to step up enforcement with a new system for penalizing price spike activity, potentially reaching up to $1,000 per day in fines. [6] They lived in the damaged complex for months paying rent in unsafe conditions. [7] According to a Washington Post analysis, the average rent in the L.A. area rose by 20 percent in the two weeks after the fire, double the maximum allowable increase under California law. [8] At least 30 people were killed in the wildfires. [9] Two days after the wildfires broke out, tech founder Edward Kushins and real estate agent Willie Baronet-Israel allegedly increased the price of a home they were renting out by 36 percent. [10] Even in the absence of a major shock like the fire, landlords are still asking for exorbitant rents, and tenants are still paying them.
Read also:
- Germany's three-month tenure under Merz's administration feels significantly extended
- United Nations Human Rights Evaluation, Session 45: United Kingdom's Statement Regarding Mauritius' Human Rights Record
- Hurricane-potential storm Erin forms, poised to become the first hurricane in the Atlantic Ocean this year.
- Amidst India's escalating climate crisis, transgender individuals continue to persevere.
