Landlords have been illegally raising prices due to the Los Angeles wildfires

The devastating California wildfires have reportedly led to illegal price gouging by landlords who are significantly raising rental prices for the tens of thousands of displaced residents, according to U.S. media reports.

Since the wildfires began last Tuesday, over 150,000 residents have been evacuated from the Los Angeles area, with another 87,000 under evacuation warnings. This means nearly a quarter of a million people could be displaced for weeks or months, requiring temporary housing.

State Attorney General Rob Bonta announced during a weekend press conference that his office has received numerous reports of hotels and rental properties in Southern California raising their prices by more than 10%, a violation of state law.

“We should not be engaged in price gouging, whether it’s groceries or rent,” Bonta emphasized. “We are very serious about this, along with the governor’s office, to ensure there is no price gouging and that anyone involved is held accountable.”

Governor Gavin Newsom has issued emergency orders aimed at preventing price gouging by landlords and other businesses, including construction companies, storage services, building supply retailers, and grocery stores. The order, which remains in effect until January 7, 2026, has not been universally followed.

Newsweek reported on a property in Bel Air listed on Zillow for $29,500 per month as of January 11, nearly double its September price of $15,900. Similarly, the Los Angeles Times found that a property in Encino was listed at $11,500 following the wildfires—an increase of $2,500 (27.7%) from its January 3 price of $9,000. After being contacted by the Times, the listing agent reduced the price to $9,800, bringing it just under the 10% threshold to comply with the law.

A real estate expert told the Times that listings for single-family homes across Los Angeles have shown price hikes of nearly 20% since the wildfires began.

“If algorithms result in prices exceeding the 10% limit after an emergency declaration, you’re breaking the law,” Bonta explained. “Landlords need to adjust their prices in accordance with the law. Whether you’re a large company or a small landlord unaware of the rules, ignorance is not an excuse.”

California law stipulates that individuals guilty of price gouging above the 10% threshold can face up to one year in county jail, a fine of up to $10,000, or both.