A
s wildfires continue to ravage the Los Angeles area, tens of thousands of people are left without homes, scrambling to find temporary or new housing amidst a severe shortage. However, many listing prices have skyrocketed, with some asking rents increasing by as much as 86 percent in just a few days. California Governor Gavin Newsom's declaration of a state of emergency has banned rent increases above 10 percent for the duration of the crisis, but enforcement may be challenging.

    Landlords are taking advantage of the situation to jack up prices, a common practice after climate-fueled disasters like fires and hurricanes. This exacerbates an existing housing crisis in Los Angeles, where there is already a shortage of over 337,000 homes. The city's pricey rental market could widen the gap between the rich and poor, experts warn.

    A recent analysis by Zillow found that several property rental prices in West Los Angeles have risen above the legal 10 percent limit since Newsom's declaration. Officials are urging people to report any instances of price gouging to the California Attorney General's office, which has warned that the practice is a crime punishable by up to a year in jail and fines.

    The housing crisis in Los Angeles is not new, but the fires have made it even more dire. Since 1960, the city's population has nearly doubled, while housing availability has lagged behind. The fires did not discriminate between high- and low-income neighborhoods, damaging or destroying both celebrity homes and affordable housing complexes.

    Recovery efforts are underway, with Airbnb offering free temporary housing for displaced people and some hotels providing discounted stays. However, experts predict that the fires will likely trigger a surge in homelessness, as people who lost their homes face a tough decision: to stay and try to rebuild or leave the city altogether.

    The impending rise of insurance costs could make home ownership too expensive for many, while the government's proposed $2.5 billion in additional funding may not be enough to address the crisis. As one expert noted, "For most people, the recovery doesn't take weeks or months. It can take years and sometimes even decades for communities to recover."