Introduction to the Crisis
Landlords of apartments surrounding the tens of thousands of homes burned in the Los Angeles County fires early this year have jacked up rents five times faster than a year ago.
Rents in 16 communities in Los Angeles and Ventura counties had median increases of 2.4 percent to $2,246 per unit, compared to a 0.5 percent increase in the same period last year, the Orange County Register reported, citing figures from ApartmentList.
The Impact of the Fires
“These increases do not indicate evidence of widespread rent gouging, but they do seem to indicate that the trajectory of the area’s rent prices has been altered by the fires,” ApartmentList wrote in a report.
ApartmentList combines pricing patterns from its rental listings with government rent-cost data, creating its rent indexes.
Its report dovetails with a similar study last month, which found landlords in Los Angeles and Orange counties had raised rents at more than twice the national rate since the January firestorm torched more than 12,000 homes around Altadena and the Pacific Palisades.
Regional Rent Increases
Rents in January and February rose 0.7 percent across the region — more than double the 0.3 percent increases for apartments nationwide and locally during the same period, according to a similar report from ApartmentList.
Monthly rents have climbed as thousands of refugees from fire-scorched neighborhoods scrambled to find places to live.
In Los Angeles and Ventura counties, rent increases in 12 of the 16 communities tracked were larger in the quarter ending in March than a year earlier, according to the Register.
Specific Areas Affected
Thousand Oaks had the largest rent jump in the two-county area, up 6.1 percent since December to $2,894 a month. Last year, rents in the city started with a 2.6 percent jump.
Pasadena, next to the Eaton fire, saw rents rise 4.3 percent this year to $2,533, compared to a 1.9 percent gain early last year.
Meanwhile, monthly rents in Santa Monica, near the Palisades fire, rose 4.2 percent to $2,556, compared to a 0.5 percent drop at the start of last year.
In Los Angeles, rents rose 1.4 percent to $2,091, versus a 0.1 percent gain last year, according to the Register.
Across the state, rents rose 1.7 last quarter to $1,884 per month, compared to a 0.8 percent bump last year. Nationally, rents rose 0.8 percent in early this year to $1,216, versus a 0.6 percent dip a year ago.
Further Reading
Read more
LA apartment rent hikes double national average in wake of wildfires
LA-market landlords illegally jack up rents 20% after firestorms
Amid claims of price gouging, agents say not all are “bad apples”
Conclusion
The significant increase in rents near the areas affected by the Los Angeles County fires is a pressing concern for those displaced by the disasters. While the data does not necessarily indicate widespread rent gouging, it does show a marked change in the trajectory of rent prices in the affected areas. As the region continues to recover from the fires, it will be important to monitor the rental market to ensure that those in need of housing are not unfairly priced out.
FAQs
Q: What was the median rent increase in Los Angeles and Ventura counties?
A: The median rent increase was 2.4 percent to $2,246 per unit.
Q: How does this compare to the same period last year?
A: This is significantly higher than the 0.5 percent increase in the same period last year.
Q: Which city had the largest rent jump in the two-county area?
A: Thousand Oaks had the largest rent jump, up 6.1 percent since December to $2,894 a month.
Q: Are the rent increases due to price gouging?
A: According to ApartmentList, the increases do not indicate evidence of widespread rent gouging, but rather a change in the trajectory of the area’s rent prices due to the fires.
