DRE Warns Against Price Gouging in Wildfire Areas

To protect California consumers affected by wildfires, DRE will diligently investigate complaints of unlawful price gouging related to rental housing by licensees and will take appropriate disciplinary action if the evidence warrants. The law (Penal Code section 396) is intended to protect victims of disasters from being further harmed.

California Penal Code 396

L.A. County’s Price Gouging Ordinance

If you are a consumer who believes they may be a victim of price gouging as it relates to real estate transactions and rental housing, complaints can be submitted to DRE at: https://dre.ca.gov/Consumers/FileComplaint.html

CAR Issues a Warning About Price Gouging

The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) has been made aware of some rental listings, both on and off the MLS, where lease prices have increased by 25 percent or more since the onset of the wildfires in Southern California. REALTORS® should be aware and advise their clients that raising the price of essential goods and services, including housing, by more than 10 percent during a state of emergency violates California’s anti-price gouging statute and is prohibited by law.

Many evacuees and homeowners who have lost their properties are in urgent need of housing. In these circumstances, real estate professionals have a responsibility to ensure rental prices remain fair and compliant with California’s Penal Code 396(e), which prohibits increasing the rental price advertised, offered or charged for housing by more than 10 percent after a declaration of emergency. 

C.A.R. has created the following resources to help address price gouging:

CAR Rent Increase Quick Guide

Attorney Generals FAQ