Understanding Price Gouging in California During Wildfires
Posted by Ben Nicolas on
In urgent need of housing after the Los Angeles wildfires, displaced residents are facing a rental market flooded with unlawful price hikes. The California Association of REALTORS® (C.A.R.) has noted alarming increases in rental prices—some by 25% or more.
Under California Penal Code Section 396, price gouging is strictly prohibited. Landlords cannot increase the price of rental housing by more than 10% after a State of Emergency is declared. For properties newly advertised or not leased before the emergency, the rent cannot exceed 160% of the fair market value established by the U.S. Department of Housing and Urban Development.
For daily rentals like Airbnb, the increase is similarly capped at 10% post-emergency. If housing was rented on a…
37 Views, 0 Comments