The Brief

This story is part of The Disaster Economy, a Grist series exploring the often chaotic, lucrative world of disaster response and recovery. It was produced by Grist and co-published with LAist. It is published with support from the CO2 Foundation.

Last January, a series of massive wildfires broke out across the Los Angeles area, fueled by high winds and dry temperatures. The fires raged for weeks, incinerating entire neighborhoods in the wealthy Pacific Palisades and in middle-class Altadena. They killed at least 30 people and destroyed at least 10,000 homes.

As the embers cooled, thousands of displaced Angelenos scrambled to find new housing in a rental market that was already among the nation’s toughest. They scoured Zillow and Airbnb for units they could afford on short notice. What they found were sky-high prices gouged by property owners and real estate agents rushing to capitalize on the surge in demand.

Dawn Smith and her family had rented in Altadena for nine years. After their home burned in the Eaton Fire, she combed through online listings for a similar alternative. But options were $10,000 a month or more, triple what she had been paying before the fire.

Eventually, she found a smaller place in Sherman Oaks, more than an hour away, for a still-astonishing $7,800. Her renter’s insurance would cover the difference for a few months, but not for the whole term of the lease. Now, as her insurance comes close to expiring, she and her husband are trying to figure out where to go next.

“The prices were insane,” she told Grist, “but because we had to find somewhere, we rented.”

Controversies over price-gouging play out all over the country in the wake of natural disasters as victims scramble for essential goods. Officials in New Jersey went after price-gouging gas stations after Hurricane Sandy; officials in North Carolina went after scam contractors after Hurricane Florence; and Florida prosecutors said they received more than 100 complaints after last year’s Hurricane Milton.

Most states have laws that prohibit such behavior, but they are difficult to enforce in the chaos of disaster, and some economists contend that they can backfire and cause shortages or hoarding.

But housing is a special case. Overpaying for water or gasoline might be difficult, but overpaying for a rental apartment is a long-term commitment that can lead to bankruptcy or eviction down the road. Concerns about price-gouging of rental apartments have appeared after numerous recent wildfires, including the 2018 Camp Fire in Paradise and the 2021 Marshall Fire in Boulder. But prosecutors and public officials have largely failed to deter or punish this illegal behavior.

Two days after wildfires broke out in Los Angeles last January, tech founder Edward Kushins and real estate agent Willie Baronet-Israel hiked the price of a home they were renting out in the waterfront city of Hermosa Beach by 36 percent, likely an increase of more than $1,000. The city is about 15 miles from the Palisades burn zone.

A month later, California Attorney General Rob Bonta sued the two, citing a state law that makes it a crime to raise prices for food and shelter during an emergency by more than 10%. If found guilty, Kushins and Baronet-Israel would face fines of up to $10,000 and as much as a year in prison.

But the Hermosa Beach listing was just one of thousands that were spiking in price. According to a Washington Post analysis of listings data from the firm RentCast, the average rent in the L.A. area rose by 20% in the two weeks after the fire — double the maximum allowable increase under California law. The home-rental company Airbnb also allowed users to raise prices above legal limits on more than 2,000 properties, despite its assurances that it would block such behavior, according to prosecutors.

The burnt remnants of an apartment building in Altadena, California, following the Eaton Fire in January. Many fire victims struggled to find housing as rents skyrocketed.

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Keith Birmingham

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This lack of enforcement is common after disasters. But this time, it triggered an unprecedented campaign for stricter regulation of housing prices — and one that got results.

“The minimal enforcement that has happened has totally sent a signal,” said Chelsea Kirk, a tenant advocate who organized against price-gouging after the L.A. wildfires. “Landlords expect that enforcement does not exist.”

Three dozen states and the District of Columbia have laws that prohibit merchants from price-gouging during an emergency, but unlike California, which prohibits hikes of more than 10%, many of these laws are vague, prohibiting “excessive” or “unconscionable” increases without specifying what that means or what goods are covered.

“The laws are all over the place,” said Teresa Murray, the lead consumer advocate at the Public Interest Research Group, a nonprofit that focuses on consumer protection. Furthermore, enforcement of these laws is minimal — the government can’t be everywhere all at once after a hurricane or flood, and most disaster victims aren’t aware of their rights and don’t track or call out violators.

The stakes are even higher when it comes to housing, which is already in shortage across the country. Around half the nation’s tenants are rent-burdened, meaning they spend more than 30% of their income on rent. Wildfires and hurricanes often destroy thousands of homes in quick succession, exacerbating supply crunch in local housing stock.

Research from across the country shows that landlords often hike prices after major fires and floods. Asking prices for rental apartments increased by 25% after the 2018 Camp Fire in Paradise, California, for instance, and by 44% in Lahaina following the 2023 Maui wildfires in Hawaiʻi. The increases even hit existing renters: More than a quarter of renters in Boulder said they saw hikes of more than 10% after the 2021 Marshall Fire, and a study of multiple flood events found that inexpensive apartments see hikes of 5% on average after a flood. These hikes hit low-income households hardest, forcing them to relocate or cut down on other expenses.

This same dynamic was on display in Los Angeles earlier this year following the Palisades and Eaton fires. One of the people who tested this market was Blanca, a woman who lived in an apartment building in Altadena, and who declined to give her last name because of her immigration status. The Eaton Fire destroyed her business and caused significant damage to the apartment complex where she and her husband lived. Even though their unit was intact, the building lacked water, gas, and electricity.

An aerial view of burned properties in Altadena, taken in July. Many of the homes destroyed in the January fires have not been rebuilt.

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Allen J. Schaben

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Blanca and her husband looked for other apartments, but all the available units they found were far too expensive, some thousands of dollars above what they had paid in Altadena for the same amount of space. They couldn’t afford anything like what landlords were asking, so after a few weeks, they moved back to their unit in the damaged complex and lived there paying rent in unsafe conditions for months.

“The place has not even been inspected, and many people have returned since February,” said Blanca in Spanish. “But there was nowhere else to go.”

In the first days after the fire, California attorney general Bonta trumpeted the state’s price-gouging ban several times — not only could landlords not raise prices by more than 10%, they also couldn’t list new units for more than 160% of typical market value. But property owners seemed either not to know about the law, or not to care.

Bonta, the attorney general, has sent more than 750 warning letters since the fire to property owners who may have price gouged, but has initiated only four lawsuits, and so far not obtained a conviction. The city attorney of Los Angeles has filed a few of its own lawsuits, including against Airbnb, but the district attorney for much larger Los Angeles County has not filed a single price-gouging case. Legal nonprofits say they can’t pick up the slack because they need a named victim in order to sue a landlord, and most disaster victims don’t have the knowledge or resources to pursue litigation.

“We have been a little bit disappointed, I will say,” said Rodney Leggett, the director of litigation at the Housing Rights Center in Los Angeles, which has sued a few property owners over the post-fire price gouging, including the company that owns the historic Villa Carlotta apartments in Hollywood. “We have gotten complaints of people seeing price gouging, [but] we have gotten relatively few … people saying, ‘I am actively being price gouged.’ I think a big part of that is it's really hard for people to track, and to know, the sort of price changes that have occurred.”

But the epidemic of price-gouging in L.A. after the fires has also triggered new progress on the difficult issue of enforcement. As Zillow flooded with overpriced homes, a group of tenant advocates began an unprecedented crowdsourcing campaign to track and shame price-gougers. Kirk, a policy advocate at the progressive nonprofit Strategic Actions for a Just Economy, was seeing numerous instances of price hikes, but she knew that Bonta’s office and local prosecutors lacked the capacity to track and sue every landlord who was posting high-priced units.

Kirk partnered with Lauren Harper, a data analyst and fellow tenant advocate, and together they took enforcement into their own hands. Forming a new organization called The Rent Brigade, they created a spreadsheet that scraped Zillow for apartment listings that violated the price-gouging laws, and also encouraged fire victims and volunteers to submit proof of gouging. In the first few weeks after the fire, volunteers submitted more than 1,500 examples.

Mike Nemeth, the head of communications for the California Apartment Association, the state’s biggest landlord lobby, told Grist that most landlords tried their best to comply with the law.

“The California Apartment Association takes seriously the legal and ethical obligations of rental housing providers during declared emergencies,” he said. “Most housing providers want to do the right thing, and our role is to help them navigate complex rules when it matters most.”

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Zoe Myers

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Thanks in part to the Rent Brigade’s pressure, local officials in Los Angeles are now trying to step up enforcement. The Los Angeles County Board of Supervisors voted in July to create a new system for penalizing price spike activity. Instead of waiting for a prosecutor or a legal nonprofit to file a court complaint against a landlord, the local government could slap the landlord with an administrative fine, the same way it would punish a restaurant with cockroaches in its kitchen or a driver who parked near a fire hydrant. The fines could reach up to $1000 per violation per day, with an additional $500 per day for failing to cooperate with county investigations.

Jamie Court, president of the advocacy firm Consumer Watchdog, says this kind of ordinance could be a model for how to enforce price-gouging laws.

“This is desperately needed as a deterrent and to let people know that price gouging is not up to prosecutorial discretion,” he told Grist. “People need to know every violation could result in a fine, not just the few prosecutors choose to prosecute.”

Los Angeles County’s price-gouging will lapse at the end of August when the fire emergency ended, so the new rules will only apply the next time California declares an emergency for a fire, flood, or other calamity. But during the last months of the ban, Kirk and other advocates noticed something unexpected — and concerning. The rush of new housing demand from the fire had ended, but many landlords were still listing new units well above fair market rate.

The L.A. housing supply, Kirk and Harper concluded, was so limited that price gouging had become a normal part of the market. Even in the absence of a major shock like the fire, landlords were still asking for exorbitant rents, and tenants were still paying them. The emergency declaration was only going to last for an arbitrary period of a few months, but the overall housing picture was as bad as ever.

“When the fire started, we were seeing a lot of these units coming online for absurd prices from people who don't usually rent, maybe knowing that people coming from the Palisades would be able to afford those kinds of things,” said Harper. “But the further that we get from the fires…I think it's reflective of just high rents.”

Facing a multi-million-dollar budget shortfall for the upcoming school year, Pasadena Unified's school board voted unanimously this week to finalize a plan to send layoff notices to more than 160 staff members as part of an effort to balance its budget that began last fall.

The district has maintained that the job reductions are necessary because of a $30 million budget deficit, part of a financial crisis made worse by the Eaton Fire.

California schools must notify employees about potential layoffs for the following school year by March 15. The number of current employees who will be out of a job next year is still unclear, in part, because people may be reassigned to vacant positions. In the past, PUSD has also rescinded some layoff notices before they took effect.

Parents, teachers and union leaders at the Thursday meeting criticized the district for targeting teachers and school staff for layoffs instead of administrative positions.

“ Teaching for PUSD means anxiety every March as it approaches, because we don't know if we're going to get to keep our job or not,” said Genevieve Miller, a PUSD teacher who said her children also graduated from the district. “ There's a different way forward.”

Board members acknowledged the decision they made was difficult.

“ I just want to be very clear that this is not the outcome that anybody prefers,” Board member Yarma Velázquez said. “Workforce reductions and the continuous, year after year position of being in this place where we have to reduce positions is draining and it is painful.

“I am very aware of what the implications are for all of the people that work here at PUSD.”

The board meeting

At the meeting, which started at 4 p.m. and nearly lasted until midnight, parents highlighted the potential of families and teachers choosing to leave the district because of the layoffs.

“ Right now, the [PUSD] community is in fight mode, as you can see from the turnout and other comments being made here tonight,” said parent Neil Tyler. “But if you approve these resolutions as proposed tonight, a large chunk of the community will quickly shift to flight mode and the death spiral of this district will begin.”

Jonathan Gardner, president of United Teachers of Pasadena, told the board that the cuts meant the district would lose dozens of middle and high school teachers and child development staff.

“ The best thing for kids and staff is always stability and making sure that we have full staff,” Gardner said. “The priorities should be working from the student experience out. Instead, what we see is millions and millions of dollars being spent on contracted services and millions and millions being spent on extra staffing at the central office.”

Speakers also noted that Pasadena Unified had endured years of budget cuts, which affected teachers, librarians and office staff.

Others said PUSD was failing to meet its requirement under California law to commit at least 55% of the district’s education expenses to teacher salaries.

LAist reached out to the district for comment on this but has not yet received a response.

Pasadena Unified board members said the cuts were necessary, especially after warnings from regulators that they could be out of compliance with requirements to balance the budget.

“For the sake of the district's solvency, I feel like it would be irresponsible if I took an action that put this district in jeopardy,” board member Michelle Bailey said Thursday night. “I can't in good conscience take that kind of action.”

About the budget issues

Concerns over declining enrollment numbers, which are tied to funding, have been growing since the Eaton Fire.

A report commissioned by a state agency recommended that the state increase its funding for the school system to help with fire recovery.

Some observers said Pasadena Unified’s budget issues date back much longer than that.

“Over the past 30 years, Pasadena Unified has faced a mounting fiscal calamity, one that you can no longer ignore or postpone,” Octavio Castelo, director of business advisory services for the Los Angeles County Office of Education, told Pasadena Unified’s board in November. “Despite your best efforts and intentions, the district has not been able to live within its means."

Cutting staff will likely mean losing some school programs, including language and music.

“ You have Mary Jackson [Elementary in Altadena] — it's a science magnet school, and they're cutting the science teacher,” Gardner, the teacher’s union president, told LAist. “That's the heart of the school.”

What happens next

The layoff notices are expected to be sent to affected staff members by mid-March.

The district will have until summer to finalize the list.

K-12 education reporter Mariana Dale contributed reporting.

The Los Angeles Unified School Board voted unanimously Friday to place Superintendent Alberto Carvalho on paid administrative leave pending the outcome of an investigation.

The FBI searched Carvalho’s home and district offices Wednesday. A DOJ spokesperson said the agency had a court-authorized warrant but declined to provide additional details. The FBI told LAist’s media partner CBS LA that the underlying affidavit remained under court-ordered seal.

The board also appointed current Chief of School Operations Andres Chait as acting superintendent after the seven-hour closed meeting Thursday and Friday.

“I know that this is a very challenging time,” said Board President Scott Schmerelson in a brief public statement after the decision was announced. “I want you to know that the board believes in you, supports you and knows that you will continue to do your very best to support the students and families of the district.”

Schmerelson clarified in an email to LAist, he was referring to Chait. The seven-member board exited the meeting room without taking questions. Carvalho was not present and has not made a public statement since the searches Wednesday.

The district posted a statement online later in which Schmerelson wrote “today’s action is aimed at fulfilling our promise to students and families to provide an excellent public education without distraction.”

The board’s decision provided clarity about district leadership, but did not shed light on the reason for the searches, which have been the subject of widespread speculation.

“While we understand the need for information, we cannot discuss the specifics of this matter pending investigation,” read the district’s statement.

Who is the acting superintendent?

Chait has worked for the district for nearly three decades. The chief of school operations’ responsibilities are varied and include athletics, the district’s office of emergency management and staff investigations. Chait has presented to the board on everything from school safety to the cell phone ban and the district’s calendar.

Chief of School Operations Andres Chait has worked for LAUSD for nearly three decades.

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“I am humbled by the Board’s confidence in appointing me to serve as acting superintendent during this critical time," Chait said in the district’s statement. "Our focus remains clear: to ensure stability, continuity, and strong leadership for our students, families, and employees."

What we know about AllHere, LAUSD’s AI tool

A spokesperson for the FBI in Miami confirmed Wednesday’s L.A. searches are linked to a search of a South Florida home the same day. That property, identified by local media outlets, belongs to Debra Kerr, who was associated with the company LAUSD contracted to create a short-lived AI tool called AllHere.

Federal authorities have not connected AllHere to this week’s investigation.

Los Angeles Unified approved a $6.2 million contract with AllHere in June 2023 to develop a tool that would create an “individual acceleration plan,” using district data and featuring an artificial intelligence chatbot.

LAUSD debuted “Ed” the following March as a "personal assistant" to students that would point them toward mental health resources and nudge students who were falling behind.

Within three months of its debut, the company behind Ed, AllHere, furloughed the bulk of its staff; its CEO was later charged with fraud. The district defended the process it used to debut that chatbot, which cost $3 million.

Parents and educators demanded transparency after the district shut down the chatbot.

Many questions remain

The federal investigation comes at a time when LAUSD is financially strained, cutting hundreds of jobs, and facing pressure from the district’s largest labor unions to settle new contracts.

SEIU Local 99, which represents school support staff and United Teachers Los Angeles (UTLA) have issued statements calling on the district to clearly communicate about the status of the superintendent and the investigation.

"UTLA educators and our school communities have long raised concerns about LAUSD rapidly increasing spending on education tech and outside contractors, while investment in classrooms and educators has declined,” UTLA wrote in a statement provided to LAist.

Carvalho has been superintendent of LAUSD since 2022, and the board unanimously renewed his contract in 2025. Prior to coming to L.A., Carvalho had worked for the Miami-Dade County school district for decades, 30 years as a teacher and the last 14 years as the district's supervisor.

Carvalho's time at LAUSD has included a number of wins for the district, including gains in test scores and participation in AP classes.

After threatening to sever ties with Scouting America and kick the youth group off military bases worldwide, Defense Secretary Pete Hegseth on Friday gave a six-month reprieve to the organization formerly known as the Boy Scouts of America.

Hegseth made the announcement in a video posted to X, framing it as an ultimatum to Scouting to conform to the Trump administration's anti-DEI agenda. He detailed his many criticisms of the group, saying Scouts had "lost their way" by changing the organization's name and "watering down" what he called "the focus on God as the ruler of the universe."

He accused the Scouts of promoting "an insidious, radical, woke ideology that is anti-America and anti-American."

Hegseth also made clear he thinks the organization should go back to being exclusively male. " Ideally, I believe the Boy Scouts should go back to being the Boy Scouts as originally founded, a group that develops boys into men," he said. "Maybe someday."

The Pentagon's promise to reevaluate its relationship with Scouting in six months was nonetheless a retreat of sorts for Hegseth. Today's announcement came after word of Hegseth's plans to shun Scouting sparked weeks of backlash, including from some Republicans. Rep. Don Bacon of Nebraska has said of Hegseth's plans: "I've heard a lot of dumb stuff, but this is up there."

In a meeting with Scouting officials in January, Hegseth had demanded that the organization change its name back to Boy Scouts and remove some 200,000 young girls from its membership.

" I knew in the meeting that my board, my organization, was not gonna make those changes," Scouting America CEO Roger Krone said in an interview with NPR.

Krone explained that the organization considers including girls to be a service to families.

" When I was a youth, we left parts of the family in the parking lot on Friday night when we went camping," Krone said. "Long before I came back to Scouting, our board made several decisions, by a vote of our national council, that we were gonna serve the entire family."

A week after the Pentagon meeting, Scouting officials sent a letter to Hegseth outlining proposed concessions. While they wouldn't change the name or kick out girls, they would drop a Citizenship in Society merit badge that promoted diversity and had been instituted after the killing of George Floyd. They would also add a Military Service merit badge, waive membership fees for military families and offer a public rededication "of duty to God, duty to country, and service."

Even after the concessions, which Scouting officials said they planned to implement regardless, a spokesman told NPR the group expected an announcement from the Pentagon severing ties was imminent. But after NPR reported on the rift, Krone said Scouting's members and alumni started lobbying against breaking the century-old partnership.

Hegseth has for years criticized Scouting for allegedly caving to progressive politics. He repeated the claim Friday. "Scouting became an organization that no longer supported and celebrated boys," Hegseth said. "They even welcomed the destructive myth of gender fluidity and transgenderism to infiltrate their membership."

The Secretary also highlighted another concession. "Scouting America will modify its policy to make clear that membership will be based solely on biological sex at birth and not gender identity," he said. "That means that the application, any application, will have only two sex designations, male and female, and the application must match the applicant's birth certificate."

Krone noted that the Scouting application already has only two sex designations. " Tomorrow it will be the same application that we had yesterday," he said. "We ask for that information so we can operate our units in a way that ensures that our kids are safe and are safeguarded."

In the wake of sexual abuse allegations that resulted in a $2.46 billion victim compensation fund, Krone says Scouting has implemented stringent policies. Along with other practices, he said they ask for gender information " so that we know from a tenting standpoint and from a bathroom standpoint how to run our programs."

Severing ties with Scouts would have meant banning scouts from meeting on military bases, withdrawing military medical and logistical assistance to the quadrennial Scout Jamboree and eliminating the program that allows Eagle Scouts to enlist at advanced rank and pay.

As reported by NPR, the Pentagon had gone so far as to coordinate with the heads of the different branches on what a separation might mean. The Pentagon circulated a draft notification internally meant for the congressional Armed Services Committees, justifying the withdrawal of military support for the Jamboree. The memo, reviewed by NPR, claimed that providing medical and logistical help to the campout, scheduled for July, would threaten national security.

With this six-month trial period, base access for Scout troops will continue and Jamboree assistance is moving forward for now, including recruitment coordination. As Hegseth pointed out on X, many boy Scouts have become high-ranking military officers, or have served the country in other ways.

"Six Boy Scouts have been elected president of the United States," Hegseth said. "Eleven of the 12 Men to walk on the Moon [were] boy Scouts."

Copyright 2026 NPR

A city commission on Thursday recommended increasing the size of the Los Angeles City Council from 15 to 25, a change long sought after by advocates who said the panel was too small for a city of nearly 4 million people.

The Charter Reform Commission also recommended moving to a ranked-choice voting system for city elections, a method in which voters choose multiple candidates in order of their preference. If no candidate wins a majority of votes, then the last-place finisher is eliminated and their supporters' second choice is counted.

Each of those moves would require changing the city’s charter, the basic set of rules and procedures by which the city operates. And any change to the charter would require voter approval.

The recommendations will go to the City Council, which will decide whether to place the proposals on the June ballot.

Born out of corruption

The commission has been meeting for six months to take input from the public and to consider charter changes. It was created in the wake of the 2022 City Hall tapes scandal, where members of the council were heard on audio discussing how to hold onto power. The conversation was laced with crude and racist remarks, triggering calls for resignation and reforms.

Council President Nury Martinez resigned.

Expanding the size of the council has been suggested as one way to help guard against corruption in local government. Supporters say making the council larger would make it better reflect the diversity of L.A.

The idea is “to have a city council that is bigger, more representative of Los Angeles and gives minorities across the city [power] to elect candidates of choice,” Commissioner Diego Andrades said at the meeting.

Several other major cities have far larger councils. New York, with 8 million people, has a 51-member City Council. Chicago, with 2.7 million residents, has a 50-member council.

The current size of the Los Angeles City Council was established nearly a century ago, when Angelenos approved the 1924 Charter. At the time, each of the 15 council members represented on average a little more than 38,000 residents.

Today, the city has grown to more than 3.9 million residents, with each councilmember now representing on average 265,000 Angelenos, according to Fair Rep LA, an advocacy group.

Increasing the size of the L.A. council to 25 would mean each member would represent 159,000 residents each.

Commissioners debated increasing the size to 29, but voted down that number amid concerns the voters would reject it as too high.

A new way of voting

The committee made several other reform recommendations during a five-hour meeting Thursday evening. The panel recommended that the city change the way it conducts elections, moving to a ranked-choice voting system for city elections starting in 2032.

With ranked-choice voting, if a candidate receives more than half of the first choices, that candidate wins outright — just like in any other election.

But if there is no majority winner after counting the first choices, the race is decided by an instant runoff. The candidate with the fewest votes is eliminated and candidates who ranked that candidate as their first choice will have their votes counted for their second choice. The process continues until one candidate has a majority of the vote.

New York conducts ranked-choice elections.

“The Charter Commission took a big step in empowering Los Angeles voters,” said Michael Feinstein, a former mayor of Santa Monica and a Green Party candidate for secretary of state.

“Ranked-choice voting allows voters to express their preferences over more than one candidate, it gets rid of the spoiler issue and gives voters a much greater voice,” he said. It also saves money because the city is required to conduct one election instead of a primary and runoff elections.

The commission also recommended the city create a chief financial officer position to replace the chief administrative officer position.

City Controller Kenneth Mejia disagreed with the recommendation, saying the CFO role should be placed in his office.

The panel also voted against giving the controller the ability to hire outside counsel and turned down Mejia’s request that the controller be able to conduct audits of all city programs, including those under elected offices.

The commission voted to recommend giving the controller a fixed budget that is a percentage of the general fund. It also agreed to recommend enshrining in the charter the controller’s waste fraud and abuse functions — something that was requested by Mejia.

Earlier this week, the panel approved bifurcating the City Attorney’s Office, creating an anti-corruption office and doubling the charter-mandated amount of funds set aside for the city parks.