
Recent wildfires in Southern California have left a trail of devastation, impacting families and businesses and driving many residents to seek temporary housing—as fears of price gouging loom large.
Impact of Wildfires
In the Los Angeles area, fires have ravaged over 45 square miles, displacing upwards of 100,000 people and tragically resulting in five deaths, according to The Associated Press.
The damage is staggering, with close to 2,000 homes and businesses destroyed.
As they navigate this crisis, many affected individuals are urgently looking for places to stay.
Michael Nourmand, who leads Nourmand & Associates Realtors in Beverly Hills, emphasized the critical need for safety during this challenging time.
He remarked that his team is diligently assessing the properties that have burned and exploring ways to assist those who find themselves without housing.
The focus has now shifted to identifying rental properties suitable for those unable to return home.
Government Response
In light of the Palisades Fire, Governor Gavin Newsom declared a state of emergency, prompting California Attorney General Rob Bonta to issue a consumer alert about the state’s strict rules against price gouging.
Under these rules, price increases are capped at 10% above pre-emergency levels for items sold prior to the emergency declaration, while prices for new goods—including necessary housing materials—can only rise by a maximum of 50% above the seller’s costs.
Nevertheless, reports of price gouging have begun to surface.
Anthony Marguleas, the founder of Amalfi Estates, experienced the catastrophe firsthand and is actively searching for rental properties in the area.
He described the situation as far more dire than most could imagine, with a significant number of homes and businesses annihilated.
Marguleas pointed out instances where landlords have raised rents by as much as 50%.
John Graff, the CEO of Ashby & Graff Real Estate, raised concerns about the overwhelming demand for temporary housing in Los Angeles.
He observed a stark shortage of both rental and purchasing options, which is driving prices higher.
Although protective laws aim to curb exploitative practices, the current market conditions pose significant challenges for those in need.
Challenges in Finding Shelter
Marguleas highlighted the struggles faced by renters who have also lost their homes.
He noted complications arise for those who prepaid several months of rent, leading to potential disagreements with landlords over refunds.
Describing his own experience of moving multiple times in a short period, Marguleas expressed the urgency of finding a new place while grappling with the emotional toll of losing his home.
With estimates suggesting that 2,000 to 3,000 individuals are now displaced but only about 200 rental properties available, the competition for housing is fierce.
Marguleas shared his struggles that resonate with many others: potential renters are overwhelmed with responses from landlords in the aftermath of this disaster.
Kevin Peranio, chief lending officer at Paramount Residential Mortgage Group, shared his own experiences in Orange County.
He mentioned his efforts to help a woman who lost her home by offering her his second property as temporary shelter.
Lindsay Brugger, vice president of urban resilience at the Urban Land Institute, cautioned that the fires will further burden an already strained rental market in Los Angeles.
She suggested that as recovery begins, it’s crucial to prioritize housing resilience against future wildfires.
Brugger advocates for the use of fire-resistant materials and landscaping designed to create defensible spaces for safety in vulnerable regions.
In summary, Southern California is in a critical state as communities confront the aftermath of devastating wildfires, grappling with urgent needs for shelter and long-term housing solutions.
Source: Housingwire