Opportunists see a chance in moneymaking out of LA fires: Desperation faced by displaced people

LA fires have sparked off yet another travesty of sorts, for the people displaced by the still-raging wildfires. As a temporary housing option, they are trying to find rented accommodations for their families, even as the homeowners and property managers are eyeing gold. What is more appalling is that rules are flouted with impunity, especially in a huge crisis like the present one.

As per a review of Zillow listings and interviews with real estate agents, housing advocates and home-seekers, not more than a 10% hike in rental prices is allowed during emergencies.

Brock Harris, with his wife Lori running a real estate brokerage, says, “A bunch of these homeowners who may have been in their home for 10, 20 or 30 years and haven’t experienced the rental market for decades — they’re going to get a crash course in the housing shortage, and it’s not pretty.”

Harris also explained what the LA fire crisis has stoked in its wake by saying, “The availability for these people to find a similar price or similar housing to what they’ve lost is a near-impossible task.” The Harris are helping the wildfire victims by providing them with rented accommodations. This also includes helping those people who are left with small mortgage amounts securing for them, smaller apartments.

LA fires force the resident to take expensive rent accommodations

For people like Joe Thompson who is a trader and an investor, this is a reality which he and his family are coming to terms with. In Santa Monica, California, Joe struggled to find a five-bedroom accommodation which however, came at an exorbitant $28,000 which, he said, was double the amount for the same property last year. Also, the property dealer demanded three months’ rent in advance with many others in line. 

Along with others, they are now on a house-finding task in an area facing a housing shortage even before the LA fires crisis struck. Though their house in Los Angeles just opposite the Pacific Palisades is still standing, they are not sure about the extent of damage done to their property. Also, they are uncertain about the possibility of returning back.   

Another face of the LA fires disaster is coming to the fore when bidding wars for rented properties are gaining speed just like the wildfires. Displaced people are appallingly, being asked to pay a full-year rent in advance, even when they are trying to stay put for short terms and are already on the waiting lists. In America, it is common to see the prices surging in the face of any crisis.

Mostly, people can’t afford the higher prices. It is also a fact that renters are finding themselves up against a wall who were renting already and property prices might also be hiked. Amongst many others, an AG’s spokesperson refused to say anything on the matter, adding that complaints regarding these issues are better to be attended privately. State Assemblymember Jacqui Irwin, representing some parts of western Los Angeles, said at a news conference recently that the hiked prices are totally unacceptable in the backdrop of such an enormous LA fire tragedy. 

Devastated people and destroyed infrastructure

More than 12,300 structures including colonies after colonies were burnt to ashes and about 40,000 acres have been destroyed entirely by the LA fires. Amongst the wildfire victims, there are working-class renters struggling with bills, retirees who have owned their homes for decades, young couples who have recently purchased houses and wealthy families with second homes elsewhere.

As of now, in the aftermath of LA fires, various areas are still burning and this has left the residents to escape with the bare minimum essentials. Many people are still coping with unbelievable tragedy and others are putting up with their families or friends or hotels. For people who have nowhere to turn to, temporary shelters have been put up by Airbnb.org, a non-profit organization along with a local nonprofit group, 211 LA.

An organizer with the Los Angeles Tenants Union, Magdaleno Rosales has put up efforts in tracking the reports about price hikes. This has been started on behalf of renters where he has got about 450 tips regarding more than 10% hikes and also, in many cases, more than 100% increases. He also said that there are worries about landlords acting quickly to cash in the opportunities of evicting working-class tenants.

Again, as per him, LA was already undergoing a severe housing crisis, and after the LA fires tragedy, it was going to get worse. Numerous rental price hikes have been reported by a leading US newspaper, where the rules have been flouted with impunity. The newspaper reported about a listing agent, Ofir Malul, who has increased the rental price by more than 10%. Gov, Gavin Newsom’s emergency declaration has been given a go-by and people like Malul and others have joined the opportunist bandwagon.

In another instance, a four-bedroom home in Topanga increased prices up to 24%, which amounts to $14,300. Also, in yet another case, a three-bedroom set increased its prices by $14,500, a 45% hike in the prices from the previous one. Efforts to connect with Malul regarding rental hikes didn’t yield anything, despite him agreeing to talk initially.

Authorities want the landlords to understand their role

The Zillow listings statement talked about the activation of internal systems to pinpoint possible violations, so that they can take appropriate action. Elaborating on the same, the statement upheld the belief to prompt the landlords to follow the local rules. This, according to the statement includes consumer protection against price increases in the wake of any natural disaster. Apart from that, the agency is providing resources to make them understand their responsibilities.

Amidst such violations, there are sparks of hope as well. There are still many who empathize and are generous towards tragedy-stricken. People like Tannis Mann opine that she has noted many cases where landlords either maintain or lower the property prices. Mann, like others, lost her Pacific Palisades house along with her family which had been brought in 2023 and is currently staying with her sister.

Mann said, “When I am looking through Zillow if I see someone raised the price, I cross them off the list. (And this is) because I don’t want that person to be my landlord.” Likewise, for Marquez Knolls in Pacific Palisades residents, Ashley and Tim Polmateer, going through a number of listings hasn’t helped them yet to find accommodation. According to them, after the fire, there was about a $1,000 increase in rentals.

Polmateer plans to stay at an Airbnb accommodation like Thompson with their families and a pet. She hopes to find a suitable place to stay by 1^st Feb. and is contented to some extent with having her immediate family with her.