After disasters like wildfires, rents can skyrocket, but federal programs can help ease the burden for affected residents
Los Angeles: The wildfires here are causing a real mess in the housing market. Thousands of homes are gone, and many folks have been forced to evacuate. Some might not even come back for a long time, leaving them scrambling for a place to stay.
The housing situation in LA was already tough, with prices sky-high and not enough affordable options. Now, with so many homes destroyed, it’s only going to get worse. I’ve been looking into how natural disasters affect rental markets for a while, and this situation is no different.
As a resident of Pasadena, I’ve seen the impact firsthand. I watched the Eaton Fire from my porch and helped friends evacuate. Now, they’re at my place, trying to figure out their next steps after losing everything.
When disasters hit, the demand for housing goes up, and that usually means higher rents. My research shows that after disasters, rents can jump by 4% to 6%. This isn’t just a quick spike; it can last for years. Even four years later, people are still paying more than they would have without the disaster.
What’s worse is that these disasters often wipe out older, affordable homes, making way for pricier developments. This drives up insurance costs and leads to stricter building codes, which only adds to the problem.
But there’s a silver lining. When the government steps in with aid, it can slow down those rent increases. Programs like the Community Development Block Grant Disaster Recovery help communities rebuild and create more affordable housing.
In areas that received this federal aid, rents still went up, but not as fast as in places that didn’t get help. These grants allowed cities to build more rental units, which eased the housing crunch and kept costs down for renters.
In fact, renters in these areas saved between $780 and $1,080 a year in housing costs. It’s clear that rebuilding isn’t just about fixing what was lost; it’s also about creating new rental opportunities.
In LA, the situation is urgent. Reports are coming in about landlords hiking rents to crazy levels. Thankfully, there are government programs that can help residents find housing now and keep the market from getting even more expensive in the future.
