To address the problem, Governor Newsom issued an executive order to cap rent increases at 10 percent during the crisis.

Recent wildfires in the Los Angeles area destroyed over 10,000 structures, many of them homes. Tens of thousands have been displaced, and the search for housing is becoming increasingly brutal. Some landlords are profiting from the crisis.

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A Beverly Hills rental home previously listed at US$14,000 per month jumped by US$4,000 overnight, while a home in the wealthy Bel Air neighborhood saw its price double to US$29,500. Many landlords see the disaster as an opportunity to profit, with some openly defying California’s price-gouging laws. Many failed to justify the increases, with some listings quickly removed after scrutiny.

Jason Oppenheim of Netflix’s popular reality show “Selling Sunset” criticized “the unethical practices” of his peers, pointing to instances where rental prices jumped by US$10,000 despite an upfront offer to pay six months’ rent.

To address these problems, California Governor Gavin Newsom issued an executive order on Jan. 16 to cap rent increases at 10 percent during the crisis. However, reports showed rental prices in areas like West Los Angeles and Bel Air are still spiking far beyond the legal limit.

California Attorney General Rob Bonta has launched investigations into reported cases of price gouging, urging residents to submit evidence to aid enforcement. However, experts noted that prosecuting these violations was complex and time-consuming, leaving many victims without immediate recourse.

The crisis is especially dire for renters, who typically have fewer resources to recover from disasters compared to homeowners. Experts warn that the wildfires’ aftermath will exacerbate the region’s housing inequality, which already heavily impacts marginalized or low-income communities.

Harvard researcher Carlos Martin criticized disaster policies for “prioritizing property ownership and exacerbating divisions between wealthy homeowners and lower-income renters.” Temporary solutions, such as free housing offered by nonprofits and discounted hotel stays, provide immediate relief, but long-term rebuilding is far more challenging.

Older residents like Renee and Ed Weitzer, who lost their Sunset Mesa home and have been living in a hotel while competing with other renters for accommodation, have struggled to secure housing despite offering to pay a year’s rent upfront. The pair plans to move into a family member’s one-bedroom apartment.

Vulnerable neighborhoods, such as historically Black areas like Altadena, are especially impacted. Local activists are highlighting the predatory practices. One organizer has documented price-gouged properties in a public spreadsheet.

The Los Angeles Tenants Union identified over 500 listings with sudden rent spikes, some exceeding 100 percent. Union organizers stressed that even legally permitted increases could strain renters already struggling in one of the nation’s most expensive cities.

As LA grapples with these challenges, local and state leaders are calling for stronger protections and accountability. County Supervisor Lindsey Horvath said displaced residents need support assurance, not exploitation. Governor Newsom has proposed US$2.5 billion for emergency recovery.

Nonetheless, housing advocates remain wary of long-term impacts. Experts predict a surge in homelessness and prolonged recovery times for affected communities.

“Recovery from disasters often takes years or even decades,” said Jeffrey Schlegelmilch, director of the National Center for Disaster Preparedness at the Columbia Climate School. For many Angelenos, already living on the edge financially, the wildfires may be the tipping point that forces them out of the city, he added.

teleSUR/ JF Source: Xinhua

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