Los Angeles landlords have been hit with allegations of predatory price gouging targeting the tens of thousands of wildfire evacuees desperate to find a place to live amid the unfolding historic disaster—with rents in some communities surging up to 10%.
The catastrophic infernos that ignited last week have already killed at least two dozen people, scorched more than 37,000 acres of land, and destroyed some 12,000 structures, according to Cal Fire. The structures include A-listers’ multimillion-dollar homes in high-end enclaves like Pacific Palisades and Malibu.
The calamitous situation is all but certain to exacerbate an already severe housing shortage in Los Angeles County, where AccuWeather is estimating the total damage and loss from the fires to be between $250 billion and $275 billion, up from its initial projection of under $60 billion.
Celebrity real estate agent Jason Oppenheim, the star of Netflix’s “Selling Sunset,” revealed in a Sunday interview with the BBC that some L.A. landlords have been exploiting the deadly tragedy to make a buck.
“There are price-gouging laws in California that are just being ignored right now,” he said. “This isn’t the time to be taking advantage of situations, and it’s also illegal to take advantage of a natural disaster.”
Oppenheim, who co-owns The Oppenheim Group with his twin brother, spoke of a client who he said went to look at a rental property that was initially listed at $13,000 per month.
The prospective renter offered the landlord $20,000 per month and six months of rent paid upfront. However, according to Oppenheim, the owner reportedly countered the offer by asking for $23,000 monthly rent—a stunning $10,000 over the initial list price.
The unnamed renter from Oppenheim’s example is not alone.
Maya Lieberman, a 50-year-old stylist from the hard-hit community of Pacific Palisades, told Agence France-Presse that she has been unable to find a place to live because of “obscene” price gouging.
“We put in an application at a house … that was listed at $17,000 a month, and they told us if we didn’t pay $30,000, we weren’t going to get it,” Lieberman told the outlet. “They told me they have people ready to offer more and pay cash. It’s absolutely insane.”
Data analyzed by Realtor.com® senior economist Joel Berner reveals that median rent prices in certain communities in and around L.A., including Santa Monica, Laguna Beach, and Lancaster, have jumped more than 10% since the outbreak of the fires. Overall, the Los Angeles metro area has seen a spike of 1.2% in median asking rents in a span of seven days.
California cracks down on greedy landlords
California officials are aware of the unscrupulous practices of money-hungry landlords eager to capitalize on the skyrocketing demand for rental homes and apartments—and they are warning them to quit exploiting the situation.
In a press conference on Saturday, state Attorney General Rob Bonta issued a stern warning that landlords caught engaging in price gouging would be held accountable, according to ABC7.
“We’ve seen businesses and landlords … jack up the price,” Bonta said. “It’s called price gouging. It is illegal. You cannot do it. It is a crime punishable by up to a year in jail and fines.”
Bonta explained that some landlords and hotels rely on algorithms based on supply and demand to set their prices. As the demand has skyrocketed over the past week, driven by evacuation orders, so have the prices.
“If those algorithms lead to prices higher after the declaration of emergency than before, by more than 10%, you’re violating the law,” Bonta continued. “You need to figure out how to adjust your prices consistent with the law. If you’re a mom and pop and you’re not aware of these laws, you’re now aware of these laws. Ignorance is not an excuse.”
Newsom takes executive action
Gov. Gavin Newsom declared a state of emergency on Jan. 7, which automatically triggered a state law aimed at reining in out-of-control price surges on housing and necessities for up to 180 days.
As Bonta reminded his audience during the weekend briefing, rents now cannot be raised more than 10% from what they were before the wildfires.
“This is California law, [and] it’s in place to protect those suffering from a tragedy,” he said.
An executive order signed by Newsom on Sunday enshrined the moratorium on price gouging through Jan. 7, 2026.