When the Palisades and Eaton fires displaced 1000’s of tenants final yr, landlords throughout L.A. jacked up rental costs whereas the flames had been nonetheless burning. Officers had been fast to reply, vowing crackdowns on value gouging.
A brand new report asserts that a lot of these threats had been toothless.
Revealed by activist group the Hire Brigade, the report analyzed L.A. County’s rental market within the yr after the fires. It discovered 18,360 potential examples of value gouging in listings, however solely 12 lawsuits filed up to now.
Gov. Gavin Newsom put price-gouging guidelines into impact on Jan. 7, the day of the fires. They’ve been in place in L.A. County ever since, they usually’re presently prolonged by means of Feb. 27, 2026. The protections prohibit landlords from elevating rents by greater than 10%, however many appeared undeterred by the principles.
Within the week after the fires, one agent instructed The Instances that their landlord shopper stated they “doubt it’ll be prosecuted,” ordering the agent to lift the worth greater than 10%. A Beverly Grove condominium jumped from $5,000 to $8,000. A property in Venice listed for 60% extra. A Santa Monica dwelling bought a value bump of greater than 100%.
“I used to be shocked by what number of clear, unavoidable instances of value gouging there have been,” stated Philip Meyer, a volunteer with the Hire Brigade who co-authored the report. “A variety of of us didn’t appear to suppose there’d be any accountability, in order that they had been breaking the legislation in plain view.”
Meyer helped design a monitoring system that scrapes knowledge from Zillow to detect value hikes larger than 10%. He stated value gouging predictably skyrocketed within the month after the fires, however then it continued all yr lengthy as enforcement lagged.
“I’m unsure if individuals realized that price-gouging legal guidelines are nonetheless in impact,” he stated.
Unlawful listings had been scattered throughout the Southland, however the report stated that 42% had been present in L.A. County’s third District, which covers Pacific Palisades, in addition to the encompassing communities the place many fireplace victims tried to relocate, together with Malibu, Santa Monica, Venice and Calabasas.
Final yr, the Hire Brigade launched a marketing campaign to tell tenants that they could have been victims of value gouging. Utilizing the Zillow knowledge, they despatched out 2,000 postcards to addresses tied to suspect listings detailing their rights; Meyer stated the objective was to assist tenants contact authorities for enforcement.
The report claims that as a lot as $49 million in extra hire might have been collected over the past yr, an estimate discovered by totaling up all of the asking costs above the authorized restrict. Nonetheless, the precise quantity is probably going considerably decrease, because the $49-million mark assumes all 18,360 unlawful listings had been rented on the marketed value.
It’s additionally seemingly that the 18,360 quantity is barely decrease, since knowledge pulled from Zillow listings don’t present info on precise leases signed — and don’t all the time present the complete image.
For instance, a Zillow itemizing may present a earlier asking value of $1,500 for a house final yr, and an asking value of $6,000 a yr later, which might register as a 300% enhance. Nonetheless, the $1,500 asking value may’ve been for a single room within the dwelling, not all the dwelling — by which case the $6,000 wouldn’t be thought of value gouging.
Nonetheless, it’s clear that 1000’s of landlords tried to benefit from elevated demand created by the fires, which is why officers on the state, county and metropolis ranges all vowed crackdowns.
There have been loads of legislative efforts to assist implement such a crackdown. In February, L.A. County raised the price-gouging penalty from $10,000 to $50,000, and the L.A. Metropolis Council raised the most penalty to $30,000. In July, the L.A. County Board of Supervisors made it simpler to punish landlords by permitting the Division of Client and Enterprise Affairs to bypass the district lawyer and straight high quality value gougers.
Different legal guidelines had been proposed, however fizzled out. A state legislation sought to lift the utmost high quality for price-gouging and develop protections to inns and different companies, however it died within the Senate Appropriations Committee. One other state legislation sought to require itemizing platforms to take away listings suspected of value gouging, however it was vetoed by Newsom in October.
Spokespeople for the town, county and state places of work that take care of value gouging responded to the report’s claims that they weren’t doing sufficient.
“As a part of our division’s work to guard Californians following the fires, California DOJ shaped a Catastrophe Aid Job Drive, despatched 753 warning letters to inns and landlords who had been accused of value gouging, and filed legal fees towards six defendants, together with Los Angeles actual property brokers and a landlord,” stated California Division of Justice spokesperson Elissa Perez, who works with state Atty. Gen. Rob Bonta. “These are instances the place the provable info supported fees.”
The report claims that L.A. County Dist. Atty. Nathan Hochman, who issued sturdy statements condemning value gouging, hasn’t prosecuted a single price-gouging case. A press release from his workplace acknowledged that no instances have been filed, however pointed to collaborations with the town and state, which have each filed price-gouging lawsuits.
Metropolis Atty. Hydee Feldstein Soto’s workplace has filed seven price-gouging lawsuits — three civil, 4 legal — starting from particular person landlords to housing firms reminiscent of Blueground and Airbnb. Bonta’s workplace has filed 5, all towards particular person landlords. All 12 instances are presently pending or awaiting trial.
Ivor Pine, a spokesperson for Feldstein Soto’s workplace, known as the report inaccurate; the report claimed the workplace investigated only one,100 instances however it really investigated 1000’s extra, which had been included in its lawsuits towards Airbnb and Blueground. He additionally questioned the report’s methodology, including that relying solely on Zillow listings may be deceptive and recommend value gouging that’s not really taking place because it solely exhibits marketed rents, not precise leases.
Pine added that enforcement efforts are ongoing and that every one instances filed search restitution of a whole lot or 1000’s of {dollars} paid to victims.
