LOS ANGELES — Heather McAlpine recently viewed a charming one-bedroom rental that evoked memories of her previous home lost to devastating wildfires in the Los Angeles region. To her dismay, the listing was snatched up just two hours after she discovered it.
She represents one of the many individuals affected by the fires, joining a crowded field of housing seekers in an area notorious for its high costs and tight availability. McAlpine, having lived in her home in Altadena for four years, is currently staying with her boyfriend, expressing her frustration over the rising rental prices.
Prior to the January wildfires that ravaged several neighborhoods, residents were just making ends meet, but now face a daunting task in finding new homes. The fires destroyed over 16,000 structures, including homes and businesses, across affluent Pacific Palisades and more modest Altadena, where nearly 22% of residences rent, according to U.S. Census data.
Although the full impact of the wildfires on the rental market is difficult to measure, trends observed by the housing platform Zillow indicate that rental prices in Los Angeles surged at a faster rate than the national average in January compared to the previous month.
Experts are warning that this increased competition from fire-displaced individuals will likely exacerbate issues surrounding housing affordability, contribute to overcrowding, and further the problem of homelessness in the region. Sarah Karlinsky, a research director at the Terner Center for Housing Innovation at UC Berkeley, highlighted that more than half of renters in Los Angeles County—amounting to approximately one million households—allocate 30% or more of their income towards housing costs.
Shane Phillips, a project manager at the UCLA Lewis Center for Regional Policy Studies, anticipates significant rent increases could persist for several months, if not years. “The influx of approximately 20,000 new households is an extraordinary pressure on an already strained market,” he noted.
According to Daryl Fairweather, chief economist at Redfin, pageviews for rental listings in Los Angeles County have soared by 50% compared to a year prior, which further emphasizes the tightening supply and intensifying competition for housing.
Immediately following the wildfires, rent prices skyrocketed, prompting a grassroots initiative among tenant activists and tech specialists to gather instances of illegal rent hikes. The Rent Brigade uncovered more than 1,300 reports of unlawful rent increases during the period from January 7 to January 18, although many of these listings have since been revised or delisted.
California Attorney General Rob Bonta has been vocal about enforcing state anti-price gouging laws, which typically allow for up to a 10% price increase in the wake of an emergency. His office has filed three misdemeanor criminal cases concerning price gouging practices.
For Wendy Dlakic, even a 10% increase seems too steep. She previously paid around $3,000 monthly for a two-bedroom condo in Altadena, which has since become uninhabitable. Currently, she is relying on friends, family, and Airbnbs while searching for a new place. “Living in LA on a single income is a struggle,” she reflected.
As of January 31, the average rent across the U.S. stood at $1,968—reflecting a 0.2% rise from the month before—as reported by Zillow. In contrast, the typical rent in the LA metro area climbed by 0.8%, reaching $2,954. This figure is calculated by averaging the rents of the middle 30% within the market.
Daniel Yukelson, executive director of the Apartment Association of Greater Los Angeles, disputes claims of rampant rent gouging, suggesting that concerns raised by tenant advocates have been exaggerated. He expressed frustration over the criminal charges filed by Bonta, stating, “Mistakes were made, but if landowners were made aware, they would have corrected them immediately.”
McAlpine, reflecting on the Eaton Fire, recalls how she managed to evacuate while assisting her neighbors, collecting her cat and essentials before losing her 300-square-foot cottage to the flames. Despite receiving support via GoFundMe for her urgent needs, she remains anxious about securing a new rental that aligns with her $1,800 budget.
The cottage she and her boyfriend hoped to rent was listed at $2,750 per month. Although their combined finances provide more flexibility, the search for affordable housing is proving disheartening. “I find myself scrutinizing listings more than ever,” she explained. “Finding a place now feels overwhelmingly complicated compared to my usual approach.”
