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The 2025 wildfires in Los Angeles have left a devastating historical mark. Families lost their homes, entire neighborhoods destroyed, and thousands of people left desperately seeking safety and stability. It’s already a heartbreaking and stressful time, but even worse, some individuals are taking advantage of this tragedy through price gouging.
Price gouging occurs when businesses or individuals dramatically increase the prices of essential goods and services — such as food, water, shelter, or gas — during a crisis, exploiting people’s urgent needs. This unethical practice adds financial strain to an already catastrophic situation.
As of January 31, 2025, the Palisades and Eaton Canyon fires have burned over 40,000 acres, claimed 29 lives, and destroyed over 18,000 structures. These fires have worsened the housing crisis in Los Angeles County, where over 75,000 people are homeless. Displaced residents are desperately looking for places to stay and basic supplies, only to find shocking price hikes.
In hard-hit areas like Pacific Palisades, Pasadena, and nearby locations, short-term rental prices have surged well beyond the average 10% increase. According to reports, some rentals have skyrocketed by as much as 86%. Meanwhile, stores and online sellers charge outrageously high prices for essentials like water, cleaning supplies, and tools. This crisis only deepens the pain for those already suffering.
Price gouging like this isn’t just unfair; it’s against the law. California Attorney General Rob Bonta is taking action. He said, “We’re on the case and will prosecute where laws have been broken.” A disaster relief task force ensures protection for wildfire victims from scams and price gouging during this difficult time. As of January 17, 2025, the Attorney General’s office has issued more than 200 warning letters to SoCal landlords and hotels suspected of unfairly raising prices amid the wildfire crisis.
LA Wildfire Victims Shocked At Rent Hikes: “This Is Absolutely Unacceptable!”
“This is absolutely unacceptable and illegal to do in the face of this horrible tragedy,” state Assemblymember Jacqui Irwin said at a news conference, addressing the growing issue of price gouging in wildfire-affected Los Angeles (NBC News Report).
Pacific Palisades resident Joe Thompson experienced this firsthand after the devastating fires displaced him from his home. Over the weekend, he came across a five-bedroom house in Santa Monica listed for $28,000 a month, more than double the rent from just a year ago. Even worse, the agent wanted three months’ rent upfront and had multiple applications already. “We’re not going to do that,” said Thompson, turning away with his family, who are now left searching for an affordable place to live.
Thompson’s story reflects the struggles faced by thousands of others in the region. Families who have lost everything are now dealing with skyrocketing rent prices in a city already grappling with a housing shortage. Some landlords and property managers are raising prices by as much as 86%, blatantly ignoring California’s law prohibiting rental increases of more than 10% during a state of emergency.
Attorney General Bonta has promised to crack down on these illegal price hikes, reminding landlords that violations could result in fines or jail time. “You cannot do it. It is a crime punishable by up to a year in jail and fines,” Bonta said. “This law exists to protect those suffering from a tragedy.”
Finding temporary housing is frustrating and heartbreaking for the Thompsons and others left scrambling after the fires. While some in the community have shown compassion and generosity, others are exploiting the disaster for profit, and that’s just not acceptable.
The Impact Of Price Gouging On LA Wildfire Victims
Under the Penal Code of California, prices of necessities, like food, water, and housing, can’t go up by more than 10% after the governor or the local government declares a state of emergency. If a seller starts offering a product or service only after the declaration, they can’t charge more than 50% above what it costs them to provide it.
Unfortunately, this law hasn’t stopped some businesses from hiking up rental prices after the LA wildfires. For example, The New York Times reported that some properties on popular rental sites like Zillow have seen prices jump by as much as 64% since the fires began. It’s tough enough for those who have lost their homes to deal with the trauma of the fires, but now they’re also facing rapidly rising rent prices in an already crowded and expensive housing market.
This sudden price increase makes it even harder for wildfire victims to find temporary housing or rebuild their lives. Families already overwhelmed by the loss of their homes now face the harsh reality of unaffordable rents. For those who are already dealing with financial difficulties, this additional challenge feels incredibly unjust.
Los Angeles Housing Crisis: Wildfire Impact On Supply And Demand
Los Angeles was already battling a housing crisis long before the fires started. The number of people living in the city has almost doubled since 1960, but there aren’t enough homes to go around. In fact, as of 2022, LA faced a staggering shortage of about 337,000 homes, which made it hard for many families to find cheap places to live. This shortfall has worsened with fires, leaving thousands of people who had to leave their homes with few choices.
Housing policies that supported building on hillsides and in the mountains put people in areas more likely to catch fire, making it harder for first responders to get to those areas. The fires didn’t care if the neighborhoods were rich or poor, but it was harder for those already having difficulty getting back on their feet.
As the need for homes grows, real estate agents work nonstop to match people with available homes, but there aren’t enough for everyone. Prices are going through the roof because there aren’t many rentals left. People like Jade Mills, a realtor from Beverly Hills, are seeing firsthand how this housing shortage affects both the rich and the everyday people struggling to find a roof over their heads after losing everything. It’s heartbreaking to see how the most vulnerable suffer the most in the aftermath of the fires.
Bidding War For Rental Homes Intensifies
There were already very few properties for sale in Los Angeles before the fires. Of the 3.7 million families in the county, fewer than 30,000 homeowners sold their homes, townhouses, and condos in the year 2023, as per the California Association of Realtors report. That’s less than 1% of the homes that are on the market. With about 10,000 homes lost in the fires (and that number is still going up), the market has become even more competitive. The way that thousands of people are joining the market is changing everything, not just the fact that they need homes suddenly.
One real estate agent explains that bidding wars have become very common in recent years in the Los Angeles real estate market. This is especially true for homes priced under $2 million, where it’s normal to receive 10 to 20 offers on a single property. Recently, many people who lost their homes are now buying new ones using insurance money. This situation has led to more buyers competing for the same houses, which is driving prices up. As a result, regular families — those with typical household incomes and budgets — are finding it harder to buy homes.
The rental market is facing some real challenges right now. While insurance might help cover living expenses, the bigger issue is that rents are skyrocketing, and there’s fierce competition for available properties. Some landlords are taking advantage of the limited supply, with many asking tenants to pay an entire year’s rent upfront.
How Disasters Affect Home Prices In LA And Adjacent Areas
Real estate professionals who talked to CNN said rebuilding after a wildfire can take a long time. This is because of all the paperwork, getting permits, clearing out burned houses, and hiring the right workers. People who lost their homes may face additional challenges, such as dealing with “predatory buyers” who make lowball cash offers on their homes.
Redfin’s news shows that home prices in wildfire areas can drop quickly. Fire-damaged homes often sell at a discount. That dip doesn’t last long, though. Redfin’s top economist, Daryl Fairweather, says that the wildfires will make homes even more expensive in the long run. As builders come in to fix up old houses, the prices of the new ones tend to go up. Also, homeowners who choose to stay often invest in fire-resistant upgrades, further increasing property values.
This effect isn’t just happening in the places where the fires are. In 2018, the Camp Fire destroyed Paradise, California. Many people who had survived ran away to nearby towns like Chico, which quickly gained almost twice as many people. Due to the sudden influx of people, housing costs increased. It’s a reminder that the aftermath of these disasters extends far beyond just the immediate damage.
Fighting Price Gouging In LA: Legal Actions And Consumer Protection
Several groups are stepping up to prevent individuals and businesses in LA from overcharging for goods. For example, Zillow, a popular online real estate marketplace, is monitoring rental ads and asking users to report any suspicious listings. They’ve even removed some ads that violated pricing rules, preventing landlords from unfairly raising rents during the crisis. They also offer guidance to landlords, explaining the rules and what’s acceptable during this time.
Besides Zillow, groups like the LA Tenants Union are also fighting price gouging. The government is collecting reports of rent increases and other violations to hold offenders accountable and protect renters during this crisis.
Companies like Airbnb are also protecting renters during this crisis. Airbnb has implemented tools to ensure hosts comply with the 10% price cap, automatically flagging instances where hosts attempt to exceed the limit. Also, some nonprofits, like 211 LA, have teamed up with Airbnb to provide temporary housing to people who had to leave their homes because of the fires. The situation is still tough, but there is hope that these steps will help ease the pain and stop the worst price gouging from happening.
According to the LA Times, Los Angeles County supervisors are pushing for stricter penalties on post-wildfire price gouging, proposing fines of up to $50,000 for landlords who impose excessive rent hikes.
Authorities Urge Residents To Report Gouging To The Attorney General’s Office
Attorney General Rob Bonta of California encourages Angelenos to take action if they suspect price gouging. Rules against price gouging cover more than just housing. They also cover food, transportation, and medical goods. Bonta wants people to tell his office directly about cases of unfair price increases. You can call (800) 952-5225 or send a complaint through their website.
You must gather evidence to help authorities build a strong case against violators. Keep any helpful facts, like the owner’s or real estate agent’s name and contact information. You can also take screenshots of price history on listings and make copies of text messages or emails. When you report possible violations, even small details like links to online lists can make a big difference.
You can find the Governor’s emergency orders on a larger scale at the official website of California Governor Gavin Newsom or through the California Office of Emergency Services. Also, some cities and counties have specific price gouging laws, so talking to the right representative in your area and checking the official website helps you determine your rights.
Financial Aid and Housing Support for LA Wildfire Victims
Recovery takes a long time after this kind of disaster. Jeffrey Schlegelmilch, the National Center for Disaster Preparedness director, said in an interview with Columbia Climate School that communities often struggle to recover immediately. Sometimes, it takes decades, and for some Angelenos, it might not even be an option.
LA’s high cost of living forces many to choose between staying and rebuilding or leaving the city altogether. One victim even shared, “Insurance is not going to give us enough money to cover a house like we had.” Nonetheless, experts say that this problem could make it harder for people to find affordable housing, which could lead to a rise in homelessness.
Governor Newsom requested $2.5 billion for fire recovery, a hopeful sign, but federal aid is uncertain due to congressional politics. Government help is crucial, but so is community support. You’re not alone; resources are available to help you rebuild.
Steps You Can Take To Protect Yourself From Price Gouging
When you’re already dealing with the effects of a disaster like a wildfire, you shouldn’t have to worry about getting ripped off. Price gouging does happen, though, and being proactive can make a big difference. Here are some things you can do to protect your rights and stop people from taking advantage of you:
- Stay Informed — California laws forbid price gouging during emergencies and limit price hikes. Check the Governor’s website or the Office of Emergency Services to know your rights, and don’t let unscrupulous people take advantage of your situation.
- Shop Around — Compare prices before big purchases or leases. Checking multiple sellers helps you avoid overpaying and understand fair pricing.
- Document Everything — If you see prices that don’t seem right, write them down. Take pictures of ads or receipts, keep text messages or emails, and write down how to reach the seller. These can support any report you make afterward.
- Report Violations — If you think someone is engaging in price gouging, report it immediately. In California, you can file a complaint with the Office of the Attorney General through their online form, or you can call them at (800) 952-5225 for further information. People in Los Angeles County may also file a price gouging complaint online or call their helpline at (800) 593-8222.
You may have too much to do to take these steps right now, but they’re worth it. An important part of recovering is keeping yourself and your community safe; resources are available to help you do this.
Resources Victims Of The LA Wildfires Can Check
Getting back on your feet after the terrible wildfires in Los Angeles can be hard, but several resources can help you rebuild and move forward. You do not need to go through this alone, whether you need help with basic needs, court issues, or applying for financial aid. Here are some key resources and steps you can take:
Applying For Federal Aid (FEMA Aid)
The Federal Emergency Management Agency (FEMA) provides vital help to people affected by wildfires. Assistance includes support for temporary housing, home repairs, funeral costs, and debris removal. You can apply for FEMA aid online or by calling (800) 621-3362.
Undocumented immigrants may qualify for FEMA aid if at least one household member is a U.S. citizen, legal resident, or holds another eligible immigration status (e.g., green card holders, refugees, asylees). If the system denies your application, don’t worry; you can file an appeal within a limited time, and resources are available to help guide you through the process.
Replacing Lost Documents
Obtaining new documents is one of the first things you must do if you lose important documents in a fire. Many forms of assistance, including financial aid and housing support, require proof of identity or residency. The State Bar of California provides helpful guidance on obtaining copies of vital documents like driver’s licenses, birth certificates, marriage licenses, and more. To get started, visit their resource page for step-by-step instructions on the replacement process.
Getting Help From State Agencies And Nonprofits
State agencies and nonprofit organizations provide wildfire victims with food, temporary shelter, unemployment assistance, crisis counseling, and more. Some of these include:
- California Office of Emergency Services — Response.CA.Gov is a centralized hub that offers information on everything from transportation impacts to health services and housing locations.
- Unemployment Claims — The California Employment Development Department (EDD) offers assistance if you’ve lost work due to the fires. Call (800) 300-5616 to file a claim or get answers to your questions.
- Food Assistance — If you’re struggling with groceries, apply for state food assistance at BenefitsCal to keep meals on the table.
- Veterans’ Support — Military veterans can access specialized help through the California Department of Veterans Affairs.
- United Policyholders — Visit the United Policyholders website for advice on documenting losses, negotiating with your insurer, and avoiding underpayments.
For a broader list of assistance options, check out LawHelpCA.org for disaster recovery resources.
Accessing Free Legal Help
Legal issues often come up after a wildfire, like disagreements with your landlord, problems with your home, or cases of consumer scams. There are places where you can get free legal help to get you through these tough times.
A very useful option is the Statewide Legal Assistance Hotline. You can leave a message at (888) 382-3406 to connect with disaster legal services for people who have survived wildfires. This hotline is open to everyone, regardless of income level, ensuring that anyone impacted can access the help they need.
Another option is the Disaster Legal Assistance Collaborative (DLAC). This organization offers a wide range of services, such as help with insurance disputes, housing issues, and stopping fraud. Visit the DLAC website to learn more and use their professional help as you get back on your feet.
Unfortunately, scammers often take advantage of disaster victims. Be cautious of anyone promising quick fixes or legal services without proper credentials.
To protect yourself from “Notario Fraud” and other legal scams, especially in the aftermath of wildfires and disaster-related price gouging, always verify an attorney’s credentials through the State Bar of California’s public profile tool. Unlike licensed attorneys, “notarios” or unlicensed individuals falsely claiming to provide legal assistance cannot represent you in court or handle legal matters. Falling victim to this scam can lead to costly mistakes, delays, or even legal consequences. Always seek guidance from qualified and licensed wildfire injury attorneys.
These resources are here to make your recovery process easier. While rebuilding may take time, knowing where to turn for help can make a big difference. Don’t hesitate to reach out for support. People and organizations are ready to stand with you through this tough time.
LA Wildfire Price Gouging FAQs
What If I Experienced Price Increases Outside The Area Affected By The Wildfire?
The law against price gouging applies to more than just the city or county that was directly affected by the wildfire. It is designed to protect consumers across the state from unfair price increases due to increased demand caused by the disaster. For example, if people must leave the Pacific Palisades because of a wildfire and go to nearby places like Ventura County, hotel prices can’t increase by more than 10% to take advantage of the higher demand. If these things happen to you, talk to wildfire lawyers to help you deal with the situation and protect your rights.
How Does The Law Against Price Gouging Affect Rental Housing During Wildfires?
After a wildfire-related emergency declaration, landlords cannot raise rental prices by more than 10% of the previously charged or advertised rate. For properties that haven’t been rented out or promoted before, the price can’t be more than 160% of the fair market value, which the U.S. Department of Housing and Urban Development sets.
This law also applies to short-term rentals like Airbnb and Vacation Rentals by Owner (VRBO), limiting price increases to 10%. Offering additional services (e.g., cleaning or utilities) or shorter lease terms does not justify illegal price hikes. Also, evicting a tenant so that you can rent to someone else at a higher rate is against the law and is a separate misdemeanor.
In addition, landlords must comply with any local emergency declarations or rent stabilization ordinances that may provide tenants with even more excellent protection. Talking to wildfire lawyers can help safeguard your rights if your rent increases unfairly after a disaster.
Moreover, wildfire lawyers can assist you in seeking compensation for property damage, lost income due to the disaster, pain and suffering, and any injuries sustained due to the wildfires. Reach out to ensure your rights are protected and you get the support you need to recover.
What Can Local Officials Do To Help Protect Consumers Against Price Gouging?
Local officials can extend price gouging protections beyond the standard 30 to 180 days after an emergency declaration by adding 30-day periods if needed to safeguard citizens. They can also enact local ordinances that impose stricter rules and harsher penalties to deter price gouging.
If you think you were charged too much after a wildfire, talk to expert wildfire lawyers. They can help you explain your rights and take legal action if needed. Aside from addressing price gouging, they can also assist in getting payment for other damages like lost income, damaged property, and other losses caused by the wildfires.
What Help Does FEMA Provide To Wildfire Victims Who Need Housing?
FEMA offers several housing assistance programs for Angelenos displaced by wildfires. If you have homeowner’s or renter’s insurance, FEMA can cover living expenses for hotel stays or rentals. This organization also provides short-term lodging at participating hotels and offers cash advances for housing through its displacement and rental assistance programs.
Additionally, FEMA provides reimbursement for any out-of-pocket lodging expenses not covered by insurance. For more guidance and to ensure you receive all the assistance you’re entitled to, wildfire lawyers can help navigate the process and explore other legal options for compensation.
Book A Free Consultation With LA Wildfire Lawyers Today!
Hiring a lawyer might be worth considering if you’ve experienced harm or loss because of the wildfire. If you’ve been affected by the Pacific Palisades Fire, Eaton Canyon Fire, Hughes Fire, or other disasters, Arash Law is here to help. Our Los Angeles wildfire lawyers are ready to guide you. As one of California’s biggest personal injury law firms, we are committed to helping you recover the monetary recovery you’re entitled to.
Not sure if you have a case? Fill out our “Do I Have A Case?” form to get started. Our team will review your situation and help you understand your rights. With over 750 million dollars recovered for our clients, we have the experience and dedication to fight for you. If you prefer to speak with us directly, call (888) 488-1391 to talk to one of our expert wildfire lawyers today.
Arash Law also specializes in motor vehicle collision cases, and our experienced car accident lawyers can help with that, too. Contact us today, and let’s start working on your case together.
