In Southern California, the housing market is anticipated to become increasingly competitive following devastating firestorms that destroyed over 12,000 homes and other structures in the Los Angeles region, leaving countless individuals without shelter.
Currently, there are reports of landlords raising rent prices excessively, leading officials to issue urgent warnings against such practices and urging residents to report unethical property owners who exceed the 10% rent increase limit.
California Attorney General Rob Bonta emphasized that it is unlawful for landlords to accept rents above this cap, even if tenants are willing to pay more.
He stated, “You cannot jack up prices and take advantage of disaster victims, plain and simple,” during a press conference.
For instance, a contemporary three-bedroom condominium in a downtown Los Angeles high-rise, which had an asking price of $5,500 per month in October, was relisted this week at an astonishing $8,500.
By Saturday, the listing had been removed.
The state has been grappling with significant issues concerning housing and homelessness and is only recently beginning to make progress in constructing more affordable housing units.
According to California law, price-gouging is prohibited following the declaration of an emergency, making it illegal for individuals and businesses to raise prices for goods and services, including rentals, by more than 10% from the price that existed before the emergency.
Violating this law is considered a misdemeanor, which could lead to a year in jail and a $10,000 fine for each infringement.
While housing protections typically last for 30 days, Governor Gavin Newsom recently extended the ban on motel, hotel, and rental housing price increases until March 8.
Various tenants’ rights organizations and landlord associations are advocating for stringent enforcement against those raising rents unjustly, especially as media sources report on extraordinarily high prices.
Social media platforms have become avenues where individuals share their own experiences regarding steep rent hikes, and many are compiling evidence in a collective Google document.
For example, a four-bedroom, four-bath dwelling in Encino that had a rental price of $12,000 in December was relisted on January 13 at $14,000, while a three-bedroom home in Los Angeles that previously was priced at $16,000 in September has now been listed for $29,000.
Both listings exceed the 10% rent increase limit and were removed by Saturday.
Regarding assistance for those in need of housing, displaced individuals with homeowner’s or renter’s insurance can receive compensation for living expenses, such as covering hotel stays or rental costs.
The Federal Emergency Management Agency (FEMA) provides various programs for those affected by the disaster, including funding for short-term accommodations at participating hotels and cash advances for housing through its rental assistance programs.
FEMA also reimburses lodging expenses that are not covered by insurance.
In terms of mortgage relief, Newsom’s office announced that five major banks have committed to offering mortgage assistance to impacted homeowners, providing a 90-day grace period for mortgage payments, waiving late fees for 90 days, and instituting a 60 to 90-day halt on new foreclosures.
The banks partnering in this relief include Bank of America, Citi, JPMorgan Chase, U.S. Bank, and Wells Fargo.
Furthermore, housing platforms are taking steps to enforce anti-gouging measures.
Airbnb announced that hosts in Los Angeles and Ventura counties who attempt to raise their prices by more than 10% will receive an error message instead of a successful listing.
The company is also reminding hosts that price gouging during a state of emergency is illegal.
Additionally, Zillow is sharing “important information for renters during a state of emergency” to inform prospective tenants about their rights under the law.
