Following two of the most destructive wildfires in California history, in which thousands of people lost their homes, tenant advocates have joined forces to file a lawsuit against six LA-based landlords and agents accused of illegally raising rents to exploit displaced residents.
Filed on February 21, 2025, the lawsuit aims to enforce compliance with California Penal Code § 396, which bans extreme price increases on housing and essential needs following state-declared emergencies. The case, based on violations of the California’s Unfair Competition Law, was brought by community-based tenant organization Strategic Actions for a Just Economy (“SAJE”), represented by the Housing Rights Center, Western Center on Law & Poverty, Legal Aid Foundation of Los Angeles, and California Center for Movement Legal Services. It is the first private action filed by legal non-profits against illegal rent gouging since the fires began.
The defendants—owners, leasing agents, and property managers—are accused of raising rents by 25% to nearly 50% in direct violation of anti-price-gouging laws, which limit rent increases to 10% following a natural disaster. The defendants were identified by a spreadsheet that tracks exploitative rent gouging, created by SAJE’s Director of Policy and Advocacy, and the Rent Brigade, a grassroots collective. The price-gouging ban remains in effect in Los Angeles County until January 7, 2026.
“These wildfires have devastated communities, destroyed homes, and taken loved ones. Their impact extends far beyond Pacific Palisades and Altadena—every neighborhood in Los Angeles and Ventura Counties may face higher housing costs for years to come as a result of these fires,” said Rodney Leggett, Litigation Director at the Housing Rights Center. “Some landlords and agents have chosen to take advantage of vulnerable people in the wake of this tragedy by price gouging. This case should serve as a warning that our organizations will always act to protect renters and homeowners from economic exploitation.”
With only a portion of the potential rent gouging infractions recorded to date, the magnitude of the issue is far larger than this complaint. An estimated 16,000 homes were destroyed by the Palisades and Eaton fires, and many more have been rendered uninhabitable. According to a Washington Post study, average rents in Los Angeles County surged by 20% in the weeks after the fires, with some neighborhoods seeing spikes as high as 130%. A separate study by the Rent Brigade estimates that landlords have overcharged tenants by more than $7 million per month since the fires began.
Read the full press release here.
What is price gouging?
Anti-price gouging protections due to the declaration of a State of Emergency in Los Angeles County remain in effect.
Price gouging is when businesses increase the price of essential goods and services, like food, repairs, construction, housing, emergency and medical supplies, and gasoline more than 10%.
This also includes rent increases, as well as hikes in hotel and motel prices for evacuees who are seeking emergency housing.
Landlords cannot raise rent by more than 10% of the previously charged price or advertised price, or this is considered price gouging.
For new rental housing (that was not previously advertised or rented), the rent cannot exceed 160% of the fair market rent established by the U.S. Department of Housing and Urban Development.
The law considers it a separate misdemeanor if a landlord evicts a tenant and re-rents the property at a higher rental rate that is prohibited by anti-price gouging statutes.
For daily rental housing like Airbnb listings, the daily price cannot be increased by more than 10% following the declaration of an emergency.
Daily rental housing, like Airbnb listings, that were previously rented on a daily basis and switched to a full-time or monthly rental following the declaration of an emergency cannot have rental prices that are more than 160% of the fair market rent.
Resources:
Affected by the wildfires and impacted by price gouging? HRC wants to hear from you.
The Housing Rights Center (HRC) has received numerous reports of landlords price-gouging tenants and homeseekers as a result of the wildfires.
Anyone affected by the Eaton fire who has been impacted by price-gouging, please report this to Housing Rights Center by:
Emailing: info@housingrightscenter.org
Calling: 1-800-477-5977, TTY: 1-213-201-0867
Anyone affected by the Palisades fire who has been impacted by price-gouging, please report this to the Legal Aid Foundation of Los Angeles (LAFLA) by:
Calling: 1-800-399-4529
How can I file a price gouging complaint with a government agency?
Residents in the City of Los Angeles can report price gouging by:
Calling MyLA311's Call Center by dialing 311 or 213-473-3231
Residents in Los Angeles County can also report price gouging to the Department of Consumer and Business Affairs by:
Phone: 1-800-593-8222
Filing a complaint online: online complaint reporting tool
Email: info@dcba.lacounty.gov
California residents can also file a complaint with the Office of the Attorney General. The Attorney General may, on behalf of the public, investigate or prosecute someone who has engaged in price gouging. Anyone who has been the victim of price gouging, or who has information regarding potential price gouging, is encouraged to immediately file a complaint with the Attorney General's Office by going to the Attorney General's website or by calling (800) 952-5225.
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