Los Angeles Fire Evacuees Struggle with Price Gouging Amid Housing Crisis

Days after wildfires devastated Pacific Palisades and other parts of Los Angeles, evacuees are facing an added crisis: skyrocketing housing costs as opportunistic landlords exploit the disaster.

“Obscene” Price Increases

Maya Lieberman, a 50-year-old stylist, is among the thousands displaced by the fires. She described her desperate search for housing, with rental prices climbing to unaffordable levels.

“We put in an application at a house… 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 AFP. “They said they have people ready to pay more in cash.”

The Pacific Palisades neighborhood, home to celebrities and some of the most valuable real estate in the U.S., has been hit particularly hard. Many homes were reduced to ash, leaving even wealthier residents scrambling for shelter.

Illegal Practices and Enforcement

California Attorney General Rob Bonta has condemned the price gouging, reminding vendors that such practices are illegal during a state of emergency.

“Price gouging is illegal. We will not stand for it. We will hold you accountable,” Bonta said, noting that violators could face a year in jail.

Under California law, vendors cannot increase prices by more than 10% following an emergency declaration. This applies to landlords, businesses, and even automated pricing algorithms used by large corporations.

Governor Gavin Newsom extended these protections until January 7, 2026, signing an executive order to curb exploitation.

Housing Crisis Intensified

For some evacuees, legal protections against price gouging offer little solace. Brian, a 69-year-old retiree who lost his rent-controlled apartment, is now sleeping in his car.

“My pension won’t stretch far in a city where rents have doubled in the last decade,” Brian said. “I’m back on the market with tens of thousands of people. That doesn’t bode well.”

With over 150,000 people evacuated and significant housing loss, the fires have exacerbated Los Angeles’ long-standing housing affordability crisis, leaving evacuees uncertain about their futures.