LA Wildfire's Dramatic Impact On CA's Rental Market: Reports

LOS ANGELES — With thousands of structures destroyed in the Palisades and Eaton fires, soaring rents and whisper networks abound as families seek a place to put their lives back together, according to reports.

Some rentals are generating bidding wars, according to The New York Times, which reported real estate agents have found homes for wealthy clients renting at tens or even hundreds of thousands of dollars per month, with one mansion going for $300,000 monthly.

Agents at Compass have been working the phones to find off-market “pocket listings” — guesthouses, spare rooms and other accommodations a homeowner might spare, the Times reported.

One Beverly Grove condo’s rent spiked from $5,000 to $8,000 after the fires, while a five-bedroom house in Santa Monica was renting for $15,000 more than it had the previous year, the Los Angeles Times reported.

Price-gouging rules triggered by a state of emergency declaration last 30 days and mean landlords typically can’t charge over 10 percent above rent prior to Jan. 7, according to the California newspaper, which noted landlords who violate the rules face as much as a year in jail and thousands in fines but are rarely prosecuted. Attorney General Rob Bonta is working with teams of attorneys to evaluate price-gouging complaints, the Los Angeles Times reported.

While real estate costs typically surge after an event like the Los Angeles fires, such effects are usually temporary and only lasted a year following the 2017 blazes in Northern California wine country, according to the Los Angeles Times.