As fires continue to burn across Los Angeles County, sparking the evacuations of more than 150,000 and the destruction of as many as 10,000 buildings, many are beginning to wonder what will happen to those now finding themselves displaced.
The tragedy comes at a time when Los Angeles has already been lacking a sustainable number of homes. So, with residents having their homes destroyed and not having enough homes to house them, how long will it be before people can return to normal?
Daryl Fairweather, a chief economist at Redfin, shared more on what may happen while speaking with Marketplace. She noted that, on average, it could take at least two years for most people to rebuild.
“The real restriction is just on labor and getting all that work done,” Fairweather said. “You can’t scale up the number of contractors and number of builders immediately.”
Still, there is hope, as past trends have shown that people rebuild after wildfires.
In 2021, Redfin published a report that analyzed areas directly impacted by fires. It found that there was a 595% average increase in the number of homes built during the three years after a wildfire. Compared to areas outside the fire perimeter, there was a 6% decrease.
While some might find themselves relocating out of Los Angeles County, some will still stay nearby as they look to rebuild.
This leaves the door open for renters to raise their monthly costs, creating a dangerous price-gouging scenario for those who just lost so much.
Among those speaking out on this is actor Chad Lowe, who shared with KNX News Radio that people should be on the lookout for landlords looking to take advantage of this tragedy.
“I wanted to make sure that the word was out to people that price gouging is illegal,” Lowe said. “So 10% above the asking price can be offered. But during a national declaration of a natural disaster or a national emergency, anything beyond that is considered price gouging.”
Lowe went on to say that his family has lost their home and he has seen listing prices that have been bumped by $3,000 to $4,000 for monthly rent. He added that they’ve also seen properties that already have 30 offers for a house or condominium. Still, he says he wants to assume the best of people.
“I also want to assume the best of people. I’m going to assume that those people don’t know what they’re doing is illegal. But if you accept more than 10% above, you are breaking the law. And that is price gouging,” Lowe said.