LOS ANGELES (KTLA) – The ongoing wildfires sweeping through Southern California could impact the finances of residents everywhere, even those not directly affected by the fires.
The Eaton and Palisades fires damaged or destroyed thousands of buildings, many of them single-family homes and apartment complexes, and Los Angeles’ housing shortage is expected to worsen.
“Rents will rise, especially near the epicenter of the 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 the impact of a shaky home insurance market could increase costs for all Angelenos.”
Part of the problem is a simple case of supply and demand. Currently, housing availability is decreasing and the number of people needing housing is increasing. Similarly, those trying to rebuild destroyed structures must share limited supplies and labor with other wildfire victims.
Experts interviewed by the Times said it will be important for public officials to be wary of price gouging, prevent large rent increases and make it easier for people to rebuild.
“We need to think outside the box,” said Larry Gross, executive director of the tenant rights group Coalition for Economic Survival. “Both state and city officials need to take action to ensure this crisis is not amplified by profiteers.”
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