The devastating forest fires The rent hikes that have hit the Los Angeles area in recent weeks have further constrained an already tight housing market, fueling concerns about price increases.

More than 12,000 structures were destroyed, officials said Los Angeles Wildfires affecting the Pacific Palisades and Altadena as well as the Malibu area. At least 27 people have died in the wildfires, which continue to pose a threat as firefighters work to contain flames fanned by Santa Ana winds.

With fires destroying significant numbers of homes in these areas and many people in the region still subject to evacuation orders due to the dynamic nature of the wildfires, area residents looking for rental options are seeing prices rise sharply compared to pre-market rates. fires broke out.

“The wildfires have had a profound and far-reaching impact on the housing market in Los Angeles,” David Berg, founding partner of Smith & Berg Property Group, Compass, told FOX Business. “Entire neighborhoods have been blighted, displacing homeowners and putting enormous pressure on already limited housing supplies. Families who have lost their homes are urgently looking for rental housing, and demand is growing in nearby communities.”

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A view of fire-ravaged beach property overlooking the Pacific Ocean as the Palisades fire burned on January 12, 2025 in Malibu, California. (FREDERIC J. BROWN/AFP via Getty Images/Getty Images)

Daryl Fairweather, chief economist at Redfin, told FOX Business that it won't be just those who are currently searching. apartment for rent look at higher rents, but “people whose leases are up soon may get a rent increase they didn't expect.” Fairweather added that some residents are looking as far away as Santa Barbara because of the high demand near fire zones.

Realtor.com Chief Economist Joel Berner told FOX Business that there were several zip codes near fire areas that saw significant jumps in rents after the Jan. 4 to Jan. 11 fires. The 90403 zip code, which he described as being in Santa Monica southwest of the Palisades fire, saw a 33.9% increase in rents. Another Santa Monica ZIP code, 90404, saw rents increase 23%, while central Pasadena's 91125 ZIP code also saw a 20% increase in the same period.

Berner noted that the data is still “noisy” as other parts of L.A. saw rents drop week-over-week, and it may be easier to see the full impact of the rental market when there is a full week of post-fire data. influence.

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A view of damaged structures and homes caused by the Palisades wildfires in the Pacific Palisades neighborhood of Los Angeles on January 11, 2025. (Axelle/Bauer-Griffin/GC Images/Getty Images)

California law limits price increases after a state of emergency is declared to 10% of the pre-emergency price, and Attorney General Rob Bonta emphasized at a recent news conference that the anti-price-goal rule applies to housing and rentals.

Zillow includes a real estate marketplace rental listingsIt told FOX Business that it is “taking steps to help eliminate rental listing price gouging in the affected areas visible on our platform by activating our internal systems to flag potential violations and removing listings with price increases that exceed emergency thresholds.” .”

“If renters see a potential violation, we encourage them to report the listing to Zillow and California authorities. We believe that housing providers must comply with local housing regulations, including protecting consumers from price gouging during and after a natural disaster. We encourage them to understand their obligations.” they provide resources to help,” the Zillow spokesperson continued.

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Destroyed homes along the Pacific Ocean after the Palisades Fire in Malibu, Tuesday, Jan. 15, 2025. (Eric Thayer/Bloomberg via Getty Images/Getty Images)

Stuart Gabriel, professor of finance and director of the UCLA Ziman Center for Real Estate, told FOX Business that while homes in fire zones are generally quite valuable, some residents may be older or have more modest incomes. wealthier neighbors, as some of the apartments are six or seven decades old. This can cause problems when they want to rebuild.

“You have to separate the value of the home from the occupants, and when it comes to homes built in the 1950s and 1960s, it's clear that the owners have wealth in the form of their housing equity — but they may not otherwise be high-income households. In fact, they may be quite modest-income households.” and in many cases it can be elderly families,” he said.

“So it's not at all clear that these households have enough or even the financial capacity to take out the loans they need and engage in the rebuilding process, which will be difficult and complex, and will take some time and require a lot of energy,” he said. he added.

Chimneys stand amid debris after the Palisades Fire broke out on January 8, 2025 in Pacific Palisades, California. (AGUSTIN PAULLIER/AFP via Getty Images/Getty Images)

Gabriel noted that state and local authorities are trying to speed up rebuilding of similar structures in areas affected by the fire, but added that there will likely be changes in building density, use of fire-resistant materials and various improvements. and other infrastructure changes address the fire risk.

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“The rebuilding of these neighborhoods is going to happen. It can't happen — these neighborhoods are very valuable, they are very valuable. But it will take time for the amenities to be replaced and accommodated and for these communities to return to a new equilibrium,” Gabriel said.