Realtors Gita Vasseghi and Melea Avrach noticed prices skyrocketing for temporary housing almost immediately after the Los Angeles fires began, revealing a troubling trend of rent gouging in the crisis. With one listing going from $3,800 to $6,500 in less than an hour, the housing market became fiercely competitive as displaced residents sought shelter. Despite laws against price hikes exceeding 10% during emergencies, agents are ignoring the regulations, pushing prices up significantly in what has become a crisis on top of a crisis.
According to Jeffrey Saad of Compass, ‘People smell blood in the water,’ indicating that the desperate housing situation allows some agents to exploit clients’ misfortunes, as it becomes a free-for-all for price hikes. The rampant activity transcends tax brackets, with examples including a Brentwood Heights apartment that increased by 19% shortly after the emergency declaration, demonstrating that the effects of the disaster impact all socioeconomic levels in the region.
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