Victims of the Los Angeles wildfires are facing massive price gouging as they look for accommodation
Reuters reports that one Beverly Hills rental home that had been listed for $14,000 a month suddenly increased by $4,000 overnight, a hike of nearly 30%. The realtor listing the property said the increase reflected “supply and demand.”
“There are really good people who are compassionate, sympathetic, empathetic, and they want to do something to help,” said one LA resident looking for temporary accommodation for his family of five.
“And then there are others who… smell an opportunity to profit, and that’s what I encountered.”
The Los Angeles Tenants’ Union, a volunteer group that lobbies for affordable housing, has identified over 500 property listings where the month rental fee has jumped significantly since the fires. In some cases, prices have more than doubled.
On Sunday, California Governor Gavin Newsom issued an executive order that makes it illegal to increases prices by more than 10% above rates charged immediately before the disaster.
State Attorney General Rob Bonta says his office has received hundreds of reports of price gouging and has now opened multiple investigations.
“This is just unimaginable conduct during this time when people need the exact opposite of being preyed on, exploited, victimized. They need support and healing and help,” Bonta said at a news conference, on Thursday. He urged the public to provide screenshots, text messages, e-mails or any other evidence to help prosecutors investigate accusations of gouging.