Introduction to Rising Rent Near Burn Areas

Several months after fires tore through Pacific Palisades and Altadena, rent near burn areas is rising faster than elsewhere in Los Angeles County, according to an L.A. Times analysis of Zillow data.

Rent Increase in ZIP Codes Near Burn Areas

In ZIP codes within three miles of the Palisades fire, rent increased 4.8% from December to April, according to the analysis. Within three miles of the Eaton fire that destroyed swaths of Altadena, rent jumped 5.2%. In L.A County ZIP codes farther than three miles of either burn area, the gain was smaller — 2.2%.

Reasons for Rising Rent

Rent could be rising for multiple reasons, experts said, but it’s likely climbing faster near the fires because thousands of homes were destroyed and displaced residents wanted to stay near where they had built their lives, in the process creating a surge of demand in an already drum-tight housing market. “It doesn’t surprise me,” said Nicole Lambrou, an urban planning professor at Cal Poly Pomona. “You’re looking close to where you were because that’s your community.”

Government Response to the Crisis

In the weeks after flames broke out, there were widespread reports of landlords illegally price gouging, even raising rent beyond 50%. But there’s been debate over how widespread and long-term the fire effects would be, leading to different responses from different government bodies. The Los Angeles County Board of Supervisors in February passed eviction protections for many tenants economically affected by the fires, but the Los Angeles City Council declined to take similar measures amid concerns they would hurt landlords. The Federal Emergency Management Agency hasn’t leased apartments for displaced residents like it has after similar disasters, saying data indicate there is enough housing available.

Methodology of the Analysis

To conduct its analysis, The Times looked at Zillow rent data at the ZIP code level for single family houses, condos and apartments and compared average rent from December — the month before the fires — to April. Because seasonal trends tend to push rent up during those months, The Times also compared the change to previous years and found rent grew more in the most recent period — both in areas near the fires, as well as those farther away.

Impact of Displacement on Rent

Housing and disaster recovery experts said displacement could be contributing at least somewhat to higher rent in areas more than three miles away from the disaster zones since not everyone has been able to — or wanted to — find housing nearby. The largest impact, however, seems to be in areas closest to the burn areas, where rent climbed around 5% from December. Communities included in ZIP codes near the Palisades burn area were Malibu, Santa Monica and Westwood. ZIP codes near Altadena included Pasadena, Arcadia and Monrovia.

Comparison with Previous Years

In previous years, rent also rose faster in these areas compared with the rest of the county, but the gap grew post-fires, which experts said indicates the fires are the likely cause. Daniel Teles, a housing researcher with the Urban Institute think tank, said the impact for tenants depends on their own financial situation. “For a lot of people it’s only a couple of percentage points, but there is a bunch of people who could barely pay their rent as is,” he said. “For them a couple of percentage points is the difference between whether they paid all their bills that month.”

Personal Stories of Displacement

Gladys Clark, a 72-year-old retired teacher, and husband William’s search for permanent housing has dragged on for months. Since losing their home of roughly three decades in Altadena, the couple bounced between several hotels, before moving into an Airbnb in Monrovia. Clark said they wanted to stay near the memories they built over the years with their five children, 21 grandchildren and one great-grandchild and inquired unsuccessfully about roughly 30 homes near Altadena. One of those they backed out of after the landlord agreed to one price only to raise it $300. Then, Clark said a client of her daughter reached out with an offer to rent, on a long-term basis, a house in Altadena. They plan to leave the Airbnb and move in this weekend, ideally staying until their house on Grandeur Avenue is rebuilt. “It was a real difficult time,” Clark said, before thanking God for helping end the months-long search. “I have to give him the glory.”

Conclusion

The rise in rent near the burn areas is a significant concern for displaced residents and experts alike. While the government has taken some measures to address the issue, more needs to be done to ensure that those affected by the fires have access to affordable housing. As the recovery process continues, it is essential to monitor the situation and take steps to mitigate the impact of rising rent on vulnerable populations.

FAQs

• Q: What is the main reason for the rise in rent near the burn areas?
  A: The main reason for the rise in rent near the burn areas is the surge in demand due to the destruction of thousands of homes and the displacement of residents who want to stay near their communities.
• Q: How much did rent increase in ZIP codes near the Palisades fire?
  A: Rent increased 4.8% from December to April in ZIP codes within three miles of the Palisades fire.
• Q: What measures has the government taken to address the issue of rising rent?
  A: The Los Angeles County Board of Supervisors passed eviction protections for many tenants economically affected by the fires, but the Los Angeles City Council declined to take similar measures.
• Q: How long is the rise in rent expected to last?
  A: Experts do not expect rent to come down as the recovery progresses, but it shouldn’t get much worse since the fires should represent a one-time injection of new demand. However, the extent to which rent stabilizes depends on how quickly new housing is built and how many people are still in hotels or other short-term options and will soon be looking for a rental in a tight market.