In January, Airbnb hosts raised nightly rates significantly amid the ongoing Eaton and Palisades fires, as evacuees sought temporary housing. Better Neighbors LA reported over 3,200 instances of alleged price gouging in Los Angeles County's rental market. Following a state of emergency declaration by Gov. Gavin Newsom, a price gouging law was enforced to curb rent hikes over 10%. Legal action has since been initiated against companies like Blueground US, accused of increasing rents by over 50%, exemplifying the moral concerns surrounding disaster profiteering.
It's classic disaster profiteering, and it's morally wrong, said Noah Suarez-Sikes, an organizer with Better Neighbors LA.
On Jan. 7, after California Gov. Gavin Newsom declared a state of emergency in Los Angeles County, rent hikes of more than 10% were prohibited by the state's price gouging law.
The organization says it has documented more than 3,200 cases of illegal price gouging in L.A. County's short-term rental market.
L.A. City Attorney Hydee Feldstein-Soto announced she has filed suit against Blueground US, Inc. for price gouging, targeting a company in the mid-term rental market.
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