LOS ANGELES (Diya TV) — The recent wildfires in Los Angeles have destroyed thousands of homes, displacing residents and intensifying the city’s housing crisis. In the aftermath, reports have surfaced of landlords significantly increasing rental prices, raising concerns about potential violations of California’s anti-price gouging laws.
Jason Oppenheim, a prominent real estate broker and star of Netflix’s “Selling Sunset,” has publicly criticized these practices. In an interview with the BBC, Oppenheim highlighted instances where landlords have raised rents beyond legal limits, exploiting the increased demand for housing. He cited a case where a landlord increased the monthly rent from $13,000 to $23,000, despite the tenant’s offer to pay $20,000 upfront.
California’s anti-price gouging statute, Penal Code Section 396, prohibits raising rental prices by more than 10% following a declared state of emergency. Violations can result in fines and imprisonment. Governor Gavin Newsom and Attorney General Rob Bonta have reiterated that such practices are illegal and that offenders will face consequences.
The wildfires have exacerbated Los Angeles’s existing housing shortage. With thousands of residents seeking temporary accommodations, the demand for rentals has surged, leading to increased prices. Experts predict that rents in the area could rise by up to 12% due to the disaster.
Displaced homeowners, like Sylvia Sweeney from Altadena, face significant challenges. Sweeney’s home, valued at $1.6 million, was destroyed, leaving her family to navigate the competitive rental market. Many homeowners find that insurance payouts are insufficient to cover the costs of rebuilding or securing new housing, forcing them to consider relocating away from the area.
The situation has prompted calls for policy changes. Environmental historian Char Miller suggests that rebuilding efforts should avoid replicating past mistakes. He advocates for reevaluating construction policies and discouraging development in high-risk fire zones to prevent future catastrophes.
In response to the crisis, some real estate professionals are offering assistance. Oppenheim announced that his firm, The Oppenheim Group, will provide free services to those displaced by the fires, aiming to help residents find suitable housing without facing exorbitant costs.
As Los Angeles continues to battle the wildfires and their aftermath, the focus remains on ensuring that displaced residents have access to fair and legal housing options. Authorities urge anyone encountering or witnessing price gouging to report such activities to the appropriate agencies for investigation and action.