LOS ANGELES (KTLA) — The ongoing wildfires ravaging Southern California are likely to impact the finances of residents everywhere, even those who haven’t been directly affected by the fire.
Thousands of structures have been damaged or destroyed in the Eaton Fire and Palisades Fire, and with many of those being single-family homes and apartment buildings, Los Angeles’ housing crunch is expected to get even worse.
“Rents will increase, especially near the epicenter of massive fires around the Pacific Palisades and Altadena,” the Los Angeles Times reports. “Those planning to rebuild their homes will face intense competition for contractors. And impacts on wavering home insurance markets could lead to greater costs for all Angelenos.”
Part of the issue is a simple case of supply and demand: There are now fewer homes and more people in need of one. Similarly, those looking to rebuild destroyed structures will have to share a limited pool of supplies and workers with other wildfire victims.
Experts who spoke to the Times said it will be critical for public officials to watch out for price gouging, prevent drastic rent increases and make it easier for people to rebuild.
“We need to be thinking out of the box,” said Larry Gross, executive director for the tenant rights group Coalition for Economic Survival. “Both state and city officials need to take action to ensure that this crisis isn’t multiplied by profiteers.”
