C
alifornia Attorney General Rob Bonta has filed the first price-gouging charges related to the recent fires, targeting La Cañada-Flintridge real estate agent Mike Kobeissi. Kobeissi allegedly raised a property's monthly rent by 38 percent from $8,700 to $12,000 after a couple displaced by the Eaton fire applied to rent it. This increase exceeds California's 10 percent limit on rent hikes following natural disasters.

    Kobeissi denies the allegations, claiming the price reflects market value in the area and that the property is now rented below market rate to fire victims. However, real estate agents and landlords argue that price-gouging restrictions are inadvertently worsening the housing crunch caused by the fires, which burned over 11,000 homes and led to a surge in demand for rental properties.

    Under state law, newly listed properties cannot charge more than $9,554 per month unless rented within the past year. This limitation is keeping high-end homes off the market, with some arguing it's preventing needed supply from coming online. Activists and officials have identified hundreds of alleged violations, with Bonta's office sending over 500 warning letters to landlords accused of gouging.

    The state's balancing act between protecting vulnerable fire victims and maintaining rental supply is under scrutiny as calls grow to reassess laws impacting high-end rental markets during emergencies. "This is a housing crisis within a crisis," Bonta said, vowing to hold those exploiting disaster victims accountable while ensuring families have access to safe, affordable housing.