As Fires Rage, L.A. Activists Put Price-Gouging Landlords on Notice

The group of volunteers has identified and begun reporting to authorities more than 700 listings to date, which they believe could be just the tip of the iceberg in a moment of deepening housing crisis for the city. 

“Landlords are taking advantage of this moment, they’re exploiting this moment,” says Kirk, who works as a director of policy and advocacy at the housing-focused Los Angeles nonprofit Strategic Actions for a Just Economy (SAJE).

The fires have forced more than 100,000 people to evacuate to date, with the flames still raging. The 12,000 buildings burned to date include not just stately mansions in the Pacific Palisades but rental apartments and modest homes in historic Black neighborhoods in Altadena. Many of those displaced worry whether they’ll ever be able to return. 

The aftermath of Maui’s devastating 2023 fires offer a cautionary tale for Los Angeles. Not only did the blazes destroy some of the island’s only designated low-income units and further strain an already tight housing supply, they also unleashed a wave of predatory behavior by landlords seeking to force out existing tenants in order to cash in on higher payments for emergency short-term rentals. Median rent on the island in the year following the fires climbed by 44%, according to a survey by Argonne National Laboratory. While Hawaii lawmakers did enact an eviction moratorium in Maui that remains in effect until next month, housing advocates allege that enforcement has been lacking.

Last week, California Gov. Gavin Newsom declared a state of emergency in response to the Los Angeles wildfires that have now killed at least 24 people. That means landlords, along with sellers of essential items like food, gas and medical supplies, generally can’t increase prices by more than 10% above what they were charging prior to the emergency, according to the California attorney general’s office. The prohibition extends through January 2026. 

But prosecution for price-gouging during natural disasters is rare, and tenants advocates warn that merely informing the public of the protections available on paper won’t be sufficient to stop abuses. SAJE is part of a coalition of organizations calling for a countywide rent freeze, eviction moratorium and rent relief programs. 

“We need rapid policy change to prevent spikes in rents and evictions, and ensure stability as our County moves forward,” according to an open letter to Los Angeles County officials from more than 30 organizations.

In These Times reviewed the crowd-sourced rent-tracking spreadsheet and contacted three landlords with multiple listings that appeared to violate the emergency regulations. None responded. 

One of those landlords, Blueground, is a venture capital-backed outfit launched by a former McKinsey consultant that offers short-term rentals in dozens of cities globally. Zillow price history data shows hikes of between 10.3% and 30% on at least nine of its Los Angeles listings. All of the changes were made between January 10 and 12. According to its website, Blueground employs a dynamic pricing model ​“driven by algorithmic software that determines the optimal price based on certain factors like seasonality, availability, duration, and more.”

Blueground did not respond to a request for comment about whether its algorithm takes into account the local price-gouging protections now in effect. But the company’s listings were revised on January 14, after In These Times reached out, with the prices now reflecting little-to-no increase above those last advertised in December. 

Zillow spokesperson Emily McDonald told In These Times that the site had activated internal systems to flag potential violations and that Zillow encourages renters to report any such listings.

Marisol Diaz, a member of the Los Angeles Tenants Union, says it’s important to remember that the economic pain won’t be contained to the fire zones. She’s already lost several days’ worth of work as a housekeeper, meaning paying her rent this month will be a squeeze.

“This crisis is not just affecting people who lost their homes,” Diaz told In These Times in Spanish through an interpreter. ​“It’s also affecting all of us as workers.”

Tenant union organizer Alanna Holt, who represents renters in eviction court, warns that inflated listings are likely just the first wave of rent-gouging that will play out in the wake of the fires.

“I predict that we’re going to see an increase in landlord harassment to get tenants who are paying below market rate out of their homes,” says Holt. ​“The underlying antagonism that fuels mass displacement … literally just got lit on fire.”