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LOS ANGELES (KTLA) — Recent wildfires have left a devastating mark on the Los Angeles area, displacing families and exacerbating an already dire housing crisis.
Rents in the region are on the rise, with accusations of short-term price gouging by landlords making national headlines. Although experts say rents are unlikely to rise by as much as 20%, KTLA 5’s consumer reporter David Lazarus said the upward trend is undeniable and is causing great stress for displaced residents. .
To better understand the crisis, Lazaro spoke with housing expert Marco Giacoletti of the University of Southern California.
One potential solution to the ongoing housing crisis is to overhaul zoning laws that allow higher-density housing in working-class neighborhoods like Altadena, which was damaged by the Eaton Fire .
“Instead of building single-family homes, we could allow developers to build duplexes and apartments,” Lazarus said.
And while this may create more housing availability, it will undoubtedly “change the character of a lot of neighborhoods” and will be tough on long-time residents, Lazarus said.
In Altadena, it stands next to the house that burned down in the Eaton Fire and the house that survived. California, Monday, January 13, 2025. (AP Photo/Noah Berger)
“I think it’s going to be very controversial,” Giacoletti said. “So it’s hard to say whether this will happen.”
Lazarus noted that most major cities around the world have introduced high-density housing to address similar challenges, avoiding long commutes and moving residents closer to city centers.
But for residents of Pasadena, Altadena, Malibu and Pacific Palisades, distance from the city center may have been a selling point for putting down roots there, not a disadvantage.
“Like other parts of the world, Los Angeles probably needs to consider that these neighborhoods, very homely neighborhoods, that we’ve enjoyed for decades may be out of step with the times. ” he said.
The fire has renewed calls for a rent freeze in Los Angeles County.
While consumer advocates say such measures are necessary, Giacoletti said the unintended consequence could be that landlords take their properties off the market entirely, further exacerbating the housing crisis. I warned you that there is.
The devastation caused by the Palisades Fire is seen in the Pacific Palisades neighborhood of Los Angeles on January 9, 2025. (AP Photo/Mark J. Terrill)
For those who lost their homes, rebuilding is a major hurdle, Lazarus said.
“There are a lot of people in Altadena who don’t have insurance. They’re just off the playing field at this point,” Lazarus explained. Raz said even for people who have insurance, excesses or delays can drag the process on for years. “Some estimates suggest it could take more than five years for many of these residents to rebuild.”
Predatory buyer offers and low-level settlement offers from insurance companies compound the difficulties. Lazarus says to be very skeptical of any cash offer you might receive.
“If you receive such an offer, that doesn’t mean you should ignore it, but get a second opinion first,” Lazarus advised. He emphasized the importance of consulting real estate professionals and other insurance companies to understand the long-term value of a property.
“If the house burns down, the value of the building goes to zero,” Lazarus said. According to the Los Angeles County Assessor, “the value of the underlying land remains significant and may account for up to two-thirds of the total value.”
Los Angeles faces an uncertain future, and the path to post-crisis recovery will require innovative solutions, resilience, and adaptability.
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