 |
As the wildfires roar on, AccuWeather has raised damage and economic loss estimates to $250-$275 billion. On January 7th, California Governor Newsom called a state of emergency. This puts into effect a series of laws that otherwise would not be applicable. Under a state of emergency in California, rent increases are raised. Penal Code Section 396 states that rent increases are limited to “No more than 10% above pre-emergency levels.” This is for BOTH existing and new leases in an effort to avoid price-gouging. Here’s an example of a property that was just listed for $19,750/month. As seen in the price history, this property was listed for $12,500/month in 2024. Now, it was raised by a whopping 58% just days after the wildfires began. Here’s another example. Just 2 months ago, this property was listed for rent at $15,900/month. On January 11th, rent prices were raised to $29,500 per month, days after the wildfires began. That’s an 85.5% increase during a state of emergency. Even worse: This home was renting for $1,895/month in 2020 during the pandemic, so an increase would make sense. However, on 1/14/25 this house was relisted for $13,500/month. This marks a 612% increase less than 5 years later. Strategic Actions for a Just Economy is an LA-based tenant rights nonprofit. Over the last week alone, they have seen over 400 listings with price increases over the 10% allowed amount. Increases are hovering by around 30% on average, but can go significantly higher as seen. Insurance losses in the LA wildfires will likely exceed $20 billion. This is set to nearly DOUBLE the previous record, even after adjusting for inflation. Total economic losses are now set to be $25-50 billion HIGHER than Hurricane Katrina after adjusting for inflation. In an already expensive real estate market, a crisis like this makes things even worse. Protecting consumers during a state of emergency is crucial. The 10% rent increase limit must be strictly enforced. submitted by /u/XGramatik |
BREAKING: Donald Trump announces a hostage deal has been secured in the Middle East.
submitted by /u/XGramatik [link] [comments]