Los Angeles landlords are facing accusations of price gouging after volunteers have collected hundreds of rental listings with eye-popping price hikes following devastating fires.
Rent prices have shot up an average of around 41%, often by thousands of dollars, among more than 400 LA rental listings since the fires broke out as of Jan. 14, according to a ConsumerAffairs analysis of online rental listings in a public spreadsheet collected by volunteers.
More than two dozen of the rentals more than doubled their prices.
ConsumerAffairs didn't independently verify all entries, but excluded a handful of outliers that appeared to have data-entry errors.
Volunteers have collected more than 800 submissions and around half have been reviewed by the volunteers, based on price history for the rental properties on websites such as Zillow and Redfin.
Chelsea Kirk, an LA native and community organizer with the LA Tenants Union, started the volunteer project.
She told ConsumerAffairs the project went viral after the LA Tenants Union encouraged people on X, formerly Twitter, to submit examples of price gouging through an online web form.
"It's been crazy," Kirk said.
Kirk said there is now a team of volunteers reporting alleged price gouging and helping review submissions.
“This price gouging is profoundly shameful," she said.
The figures suggest that price gouging is taking place in violation of California law.
Price gouging occurs when sellers increase prices on consumers goods and services during an emergency or disaster, according to the California attorney general.
California’s Penal Code 396 prohibits raising prices by more than 10% after an emergency declaration, including on permanent or temporary rental housing, motels, hotels and mobile homes.
The office of California’s attorney general, Rob Bonta, also warned of the penalties for price gouging following the fires, saying it can result in a year in jail-time or a fine of up to $10,000.
In a Monday press conference, Los Angeles County District Attorney Nathan Hochman continued to warn against price gouging.
“The criminals have decided that this is an opportunity, and I’m here to tell you that this is not an opportunity,” he said during the conference. “You will be arrested, you will be prosecuted and you will be punished to the full extent of the law.”
Know more about price gouging? Write to dholger@consumeraffairs.com and asandhulongoria@consumeraffairs.com.