Los Angeles County landlords are poised to regain significant pricing power as emergency anti-price gouging protections are set to expire on May 29. The decision follows a Tuesday meeting of the Los Angeles County Board of Supervisors, where the board failed to secure the votes necessary to extend rent caps originally implemented after the devastating Palisades and Eaton fires of January 2025.
The emergency restrictions were established more than 16 months ago to protect thousands of residents displaced by the wildfires, which had severely tightened an already strained housing market. Under these rules, landlords were prohibited from increasing rents by more than 10 percent above pre-fire advertised levels. Owners were barred from charging more than 200 percent of fair market rent for units that had previously been unlisted.
A Divided Board
The effort to extend these protections through late June was defeated when three supervisors abstained from the vote. Supervisors Lindsey Horvath and Hilda Solis voted in favor of the extension, while Kathryn Barger, Janice Hahn and Holly Mitchell abstained, effectively ending the protections.
Supervisor Horvath argued that the restrictions remain a necessity for those still recovering from the disasters. According to Horvath, roughly two-thirds of fire survivors are still living in temporary housing, and many have already used up their insurance payouts.
“[Residents] have run out of financial displacement coverage from their insurance companies, which reinforces the need to continue price gouging restrictions, to protect these homeowners from drastic price increases,” Horvath stated. “We continue hearing from residents who are struggling to recover financially and stay housed as they rebuild.”
Horvath had suggested that the ban should remain in place until the Department of Consumer and Business Affairs could provide additional data regarding the rental market and resident displacement.
Landlord Opposition and Enforcement Concerns
The end of the restrictions comes after months of lobbying from landlord organizations. Jesus Rojas of the Apartment Association of Greater Los Angeles told county leaders that the emergency rules had drifted beyond their intended purpose and were “wrongfully being used to harm thousands of rental housing providers throughout the entire county.”
The move to end rent caps follows the county’s decision in March to shut down similar price gouging restrictions on hotels, a move supported by survey data indicating that few displaced families were still utilizing temporary lodging.
However, tenant advocates expressed concern over the lack of oversight during the period the protections were active. Chelsea Kirk, the founding organizer of the Rent Brigade, noted that while tenant pressure helped maintain the ban, the rules were infrequently enforced. Kirk suggested that with the protections now ending, the possibility of seeing political will or resources dedicated to enforcement no longer feels likely.
Potential Implications
With the expiration of these caps on May 29, the rental market may see a shift in pricing dynamics. Possible outcomes include:
- Increased Rental Costs: Landlords may now be able to raise rents beyond the previous 10 percent cap, which could specifically impact the remaining third of fire survivors still seeking permanent housing.
- Market Volatility: Previously unlisted units may see price increases exceeding the former 200 percent fair market rent limit.
- Housing Instability: For residents who have exhausted their insurance coverage, the absence of price protections could make it more challenging to remain housed while rebuilding.