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.

(

Keith Birmingham

/

MediaNews Group/Pasadena Star-News via Getty Images via Grist

)

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.

(

Allen J. Schaben

/

Los Angeles Times via Getty Images via Grist

)

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.”

(

Zoe Myers

/

AFP via Getty Images via Grist

)

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.”

Four million acres of California’s wildest backcountry could soon be opened to paving roads and logging.

The Trump administration announced last week that it’s pushing forward with a proposal to scrap a 2001 rule that blocks logging, road building and other construction in parts of national forests. The administration argues repealing the so-called “roadless rule” is key to managing vegetation to better prevent wildfires on public lands.

Environmental advocates and other groups worry rescinding the rule would harm pristine habitat and the wildlife it supports, and open up more public land to industrial activities and human access that can cause more wildfires.

And locals are worried about losing access to some of the last protected natural lands in the region.

“What we're dealing with here in the roadless rule is the protection of the backcountry,” said David Browning, president of the Orange County Mountain Bike Association, “where you can actually go out and be having an experience where you don't hear traffic, where you don't see buildings, where you actually remember what it was like before all of us got here.”

In Southern California, large swaths of the Los Padres, Angeles, San Bernardino and Cleveland national forests would lose protections.

Browning, who spoke with All Things Considered host Julia Paskin on Monday, said he’s particularly concerned about the Santa Ana Mountains, where much of Orange County’s backcountry biking trails exist within a roadless area that could be opened to construction.

“Our mission is to protect and expand trail access, and so our entire agenda is to make sure that in a highly populated county, like Orange, that we have available the outdoors to be able to go and enjoy,” he said.

Browning takes issue with the wildfire argument — he pointed to the 2024 Airport Fire, which was sparked when heavy equipment operated by Orange County employees struck a rock. They were moving large boulders that day to, in part, block vehicles from getting into a dry brush area and potentially starting a fire. Browning said the “roadless rule” prevents such access that could increase the risk of fire. A recent peer-reviewed study supports that, finding that although roads are important for managing a fire once it ignites, they’re also more likely to be a place where a fire starts.

Though addressing wildfires and protecting public lands have become heavily politicized under the Trump administration, Browning thinks most locals probably aren’t as divided.

“ I don't think this is a party issue,” he said. “We want to hold onto the outdoors and protect them as best we can.”

There unfortunately isn’t much respite in sight for heat-weary Southern Californians.

Forecasters say this week’s heat wave is likely to be the hottest so far this summer. Extreme heat warnings will be in effect from the National Weather Service for almost the entire region from Tuesday morning through Friday evening.

Temperatures will peak between Tuesday and Thursday.

Highs in downtown Los Angeles are expected to reach around 100 degrees, and the warmest inland valleys will get up to 112. L.A. County beaches will hit the high 80s.

Forecasters have also issued Red Flag Warnings for the interior mountains and foothills of Los Angeles, Ventura and Santa Barbara counties. Gusty winds and low humidity at higher elevations mean fires could spark and spread quickly.

At lower elevations, humidity continues to make the heat feel more sweltering and make it harder to cool down, especially at night. Nighttime temperatures will only get down to the 70s in most places, including along the coast.

A slight cooldown is expected this weekend, though forecasters say temperatures will stay above normal into next week.

The extreme heat this week poses an especially high risk of heat-related illness for people over 65, young children, people who work or spend a lot of time outside and those without access to air conditioning.

Driving the heat

Several factors are behind this week’s heat wave, many of which have also been behind the rest of this summer’s consistently hot weather.

The main driver is a high pressure air system hovering over the southwestern U.S., trapping warm air, compressing it and warming it further, and blocking cooler air from entering the region.

Offshore winds are also pushing warm inland air toward the coast, preventing cooler onshore winds from blowing inland.

“That blocks our natural air conditioning off the ocean from coming in as early as it normally does,” said Weather Service meteorologist Mike Wofford. “So as long as that cool air stays offshore, it heats up on land.”

The offshore winds are not strong enough, however, to significantly dry out the air in the L.A. Basin and cut down on the humidity.

“That's probably going to be around for the whole summer because you’ve got all this warm ocean water that's feeding into that,” Wofford said.

Warmer seawater evaporates faster, adding to moisture in the air and increasing humidity across the region, especially along the coasts.

Air quality warnings

Along with the heat this week, many Southern Californians also have smog to worry about.

The South Coast Air Quality Management District issued an ozone advisory on Monday for inland areas of Los Angeles and Orange counties, much of Riverside County and parts of San Bernardino County. It will remain in effect through Friday evening.

The multi-day smog event is in part driven by the heatwave.

Officials say ozone pollution may reach unhealthy levels or higher in the Santa Clarita Valley, parts of the San Gabriel and San Bernardino valleys, and portions of the San Bernardino Mountains.

Under unhealthy levels, it’s possible for anyone to experience adverse health effects like difficulty breathing and throat irritation. Sensitive populations could experience more serious effects.

Levels are expected to be unhealthy for sensitive groups in the San Fernando Valley, Perris Valley, Mission Viejo, Lake Elsinore, Corona, Hemet, Riverside and Pasadena.

Officials advise certain vulnerable groups — including people with heart or lung disease, those with asthma, pregnant women, children and people over 65 — to limit their time outdoors.

Officials predict that ozone levels will be lower along the coast.