‘It gives you a stomach ache’: Real estate mogul Josh Altman says LA residents can’t find a new home — rents are skyrocketing despite new law that caps price increases at 10%

An already struggling rental market gets worse

The California rental market was already stretched thin before the fires, with vacancy rates declining and prices climbing steadily over the past few years. The fires have only worsened this situation, intensifying demand and pushing prices higher — and many renters can’t keep up.

Jay Gilberg, a resident who lost his 5-bedroom home in the Pacific Palisades fire, shared the struggles his blended family of five have faced while searching for a suitable rental. Gilberg was shocked to see the significant price hikes.

For instance, Gilbert spotted a rental home in Beverly Hills that had been listed at $14,000 per month, but the very next day the same home had been re-listed at $18,000 — a nearly 30% increase overnight. His real estate agent explained that this price jump was a direct result of the high demand created by the devastating fires.

"There are really good people who are compassionate, sympathetic, empathetic, and they want to do something to help," Gilberg told Reuters. "And then there are others who … smell an opportunity to profit, and that's what I encountered."

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A new law to prevent price gouging

In an effort to combat predatory price gouging, California Governor Gavin Newsome signed an executive order on January 16, 2025, prohibiting rent increases of more than 10% in Los Angeles County through March 8, 2025.

The measure applies to both existing tenants and new leases created during the emergency period. Violators face potential jail time, hefty fines and civil penalties. And while the executive order offers some hope for LA residents, it hasn’t completely stopped landlords from seeking ways around the restriction.

California Attorney General Rob Bonta says his office has received hundreds of reports of price gouging and has launched multiple investigations in response.

"This is just unimaginable conduct during this time when people need the exact opposite of being preyed on, exploited, victimized," Bonta said during a news conference. “They need support and healing and help.”

Bonta has called on the public to provide evidence of price gouging, such as text messages, screenshots, emails or any other relevant documentation to assist prosecutors in building a case.

How landlords are getting around the 10% law

According to Altman, there's a growing sector of landlords aiming to get around the new law — likely driven by wealthy but desperate locals who just need a place to call home. Many landlords are using creative ways to bypass the 10% rent increase cap by listing properties off-market or, in some cases, just listing and ignoring the consequences.

"Ordinances are changing by the hour. I'm actually involved with a group of realtors that have this list…there's over 2,000 units just on this list of people who had different prices in late December and now they are higher in January,” Altman shared with Cuomo. “That's a big issue. It's very obvious, it's not like you can hide this."

While Altman notes his team refuses to work with landlords who engage in price gouging, the industry's chaotic state has made it unclear what the true consequences will be for those taking advantage of the crisis.

Altman has been working closely with many residents who have lost their homes and says the scale of devastation is difficult to explain.

"I walked the Palisades, I walked Malibu. For people watching around the world and seeing this, I'm telling you, it's 100 times worse when you walk those areas,” said Altman. “It gives you a stomach ache. You can't even wrap your head around it. Neighborhoods, gone."

As thousands of families flood the California rental market, many residents are faced with a difficult situation. Finding a new place to call home is tough enough, but finding a place they can afford during one of the most devastating periods of their lives has made matters much more dire.