Price Gouging During The Los Angeles Wildfire Crisis

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    The 2025 wildfires in Los Angeles have left a devastating historical mark. Families have lost their homes, entire neighborhoods are being destroyed, and thousands of people are desperately seeking safety and stability. It’s already a heartbreaking and stressful time, but what makes it even worse is that 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 23, 2025, the Palisades and Eaton Canyon fires have burned more than 40,000 acres, claimed 28 lives, and destroyed over 16,000 structures. These fires have worsened the housing crisis in Los Angeles County, where over 75,000 people are homeless. Now, 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 are charging 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, promising to go after anyone breaking the rules. He said, “We’re on the case, and we will prosecute where laws have been broken.” A disaster relief task force is working to make sure wildfire victims are protected from scams and price gouging during this already difficult time.

    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 home 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 that prohibits rental increases of more than 10% during a state of emergency.

    Attorney General Rob Bonta has promised to crack down on these illegal price hikes, reminding landlords that violations could result in fines or even 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.”

    For the Thompsons and others left scrambling after the fires, finding temporary housing is frustrating and heartbreaking. 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?

    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 a state of emergency is declared by the Governor or the local government. 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 in the aftermath of 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 is making it even harder for wildfire victims to find temporary housing or to rebuild their lives. Families, already overwhelmed with the loss of their homes, are now faced with the harsh reality of unaffordable rents. For those who are already dealing with financial difficulties, this additional challenge feels incredibly unjust.

    Short Supply And Surging Demand In An Already Crisis-Stricken LA

    Long before the fires started, Los Angeles was already battling a housing crisis. 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 gotten worse 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 that were more likely to catch fire, which made 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 who were already having a hard time 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 is affecting not just the rich but also the everyday people struggling to find a roof over their heads after losing everything. It’s heartbreaking to see how the most vulnerable are the ones suffering 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 report from the California Association of Realtors. 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 all of a sudden.

    One real estate agent explains that over the past few years, bidding wars were already a common part of the LA market, with homes under $2 million getting 10 to 20 offers. Yet now, people who lost their homes are shopping with insurance money, which means even more buyers with the means to compete for the same properties. Due to this sudden rise in demand, prices are going up, and normal families are having a hard time getting in.

    The rental market is facing similar challenges. Even though insurance might cover living costs, the real problem is that rents are shooting through the roof, and there is a lot of competition for available properties. Some landlords are increasingly capitalizing on the limited supply, with some demanding tenants to pay a full year’s rent upfront.

    How Disasters Affect Home Prices In LA And Adjacent Areas

    Real estate professionals who talked to CNN said that it can take a long time to rebuild after a wildfire. It is a lengthy process 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 having to deal with “predatory buyers” who make lowball cash offers on their homes.

    Redfin’s news shows that, in the short term, home prices in wildfire areas can drop. 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.

    What Is Being Done About The Price Gouging?

    Several different groups are stepping up to prevent individuals and businesses in LA from overcharging for goods. For example, Zillow is constantly checking rental ads and asking users to report any listings that seem to break the rules on prices. In order to stop landlords from unfairly raising prices during the crisis, they’ve even taken down a few ads that didn’t follow the rules. They also said they would help landlords understand what they need to do and let them know what is and isn’t okay during this situation.

    Along with Zillow’s work, neighborhood groups such as the LA Tenants Union are also taking action. The government has created spreadsheets so that people can record rental price increases and other violations they’ve seen since the wildfires. They are working hard to keep track of these reports and send them to the right people in each area, such as the Attorney General of California. The goal is to ensure that offenders are held accountable and that vulnerable renters are protected from exploitation during this challenging time.

    Companies like Airbnb are also playing a role in 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.

    Authorities Urge Residents To Report Gouging To The Attorney General’s Office

    Woman Reporting Gouging To The Attorney General’s Office

    Attorney General Rob Bonta of California is encouraging Angelenos to take action if they suspect instances of 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.

    To help authorities build a strong case against violators, you must gather evidence. Keep any facts you find useful, like the name and contact information of the owner or real estate agent. 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 figure out what your rights are.

    Support Available For Wildfire Victims During Price Gouging Crackdowns

    Recovery takes a long time after this kind of disaster. Jeffrey Schlegelmilch, the director of the National Center for Disaster Preparedness, 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.

    The spiking cost of living in Los Angeles makes it seem impossible for some people to buy a home. Several individuals have to choose whether to stay in the city and try to rebuild or to leave it 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.

    As a way to help with emergency response and recovery in the areas hit by the fires, Governor Newsom has asked for $2.5 billion in funds. Such support is a sign of hope, but there are still problems to solve. There are also talks about getting federal help, but political arguments in Congress could slow down or make the process more difficult, leaving many families in the dark.

    Help from the government is important, but so is support from neighbors, local organizations, and volunteers. Know that you’re not alone as you go through this tough process. There are people and specific resources out there that can 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. To keep yourself safe, do these things:

    • Stay Informed — There are laws in California that stop price gouging during emergencies and limit how much prices can go up. To stay up to date on when and where these rights apply, check the Governor’s website or the Office of Emergency Services. When you know the rules, you can tell when something doesn’t seem right.
    • Shop Around — Take a little extra time to compare prices before you buy something big or sign a lease. Checking with more than one seller or site can help you avoid paying too much for a hotel stay, an apartment, or everyday items. You’ll also have a better idea of what’s fair and what’s overpriced.
    • 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. Things like these can help a lot if you need to report a problem afterward.
    • Report Violations — If you think someone is engaging in price gouging, you should report it right away. If you want to file a complaint in California, you can do so online or by calling their hotline. Not only will speaking out help you, but it will also aid in stopping unfair actions that could hurt other people in the same position.

    You may have too much to do right now to take these steps, but they’re worth it. An important part of recovering is keeping yourself and your community safe, and there are resources available to help you do this.

    Resources Victims Of The LA Wildfires Can Check

    It can be hard to get back on your feet after the terrible wildfires in Los Angeles, but several resources can help you rebuild and move forward. There is no need for you 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

    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.

    Even if you or your family members are undocumented, you might still qualify for assistance if someone in your household has a recognized immigration status. 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 need to do if you lost 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 how to obtain 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

    Receiving food rations after wildfire incident

    State agencies and nonprofit organizations are stepping in to provide wildfire victims with food, temporary shelter, unemployment assistance, crisis counseling, and more. Some of these include:

    • California Office of Emergency ServicesResponse.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 has access to 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 find out 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, always verify an attorney’s credentials through the State Bar of California’s public profile tool. Doing this will help ensure you’re working with a licensed professional. Additionally, be wary of “notaries” or unlicensed individuals claiming to provide legal advice. Only licensed wildfire injury attorneys are authorized to assist with legal matters, so report any suspected fraud right away. They are here to help, especially if you’ve experienced property damage, lost income due to workplace destruction, or other wildfire-related losses.

    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. There are people and organizations ready to stand with you through this tough time.

    Frequently Asked Questions About Price Gouging Amidst the LA Wildfire Emergency
    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 have to leave the Pacific Palisades because of a wildfire and go to nearby places like Ventura County, hotel prices there can’t go up 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. The price can’t be more than 160% of the fair market value, which is set by the U.S. Department of Housing and Urban Development, for properties that haven’t been rented out or promoted before.

    This law also applies to short-term rentals like Airbnb and Vacation Rentals by Owner (VRBO), and it limits 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 greater protection. Talking to wildfire lawyers can help safeguard your rights if your rent is increasing 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 as a result of 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 homeowners or renters insurance, FEMA can cover living expenses for stays at hotels 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.

    Call Our 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 the biggest personal injury law firms in California, 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 legal team will review your situation and help you understand your rights. With over 500 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. Get in touch with us today, and let’s start working on your case together.

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    DISCLAIMER: Information provided on this blog is not formal legal advice. It is generic legal information. Under no circumstances should the information on this page be relied upon when deciding the proper course of a legal action. Always obtain a free and confidential case evaluation from a reputable attorney near you if you think you might have a personal injury lawsuit.

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