Article written by Wesley Kang, KellerWilliams Realty
The recent Eaton Fire has profoundly impacted our community, leaving many families displaced and raising concerns about housing availability and affordability. My name is Wesley Kang—a local realtor in Alhambra. I’d like to give my perspective on the impacts of the Eaton Fire on housing and our community and hope to provide some guidance to those affected. Here’s what to look out for, and the corresponding regulations to aid those who are displaced and looking for a place to stay.
My Take on the Impact on Home Prices and Inventory in Greater SGV
The Eaton Fire has destroyed numerous homes, particularly in areas like Altadena and Pasadena. This sudden reduction in housing stock is expected to tighten the real estate market in neighboring communities, including Alhambra, San Gabriel, Arcadia, etc. Historically, such disasters can lead to an initial decline in home values due to uncertainty and potential damage. However, in high-demand areas, values often remain stable or even increase as buyers seek homes in less affected regions.
Anecdotally, my buyers who are currently shopping for homes are bidding against anywhere from 20-40 offers on desirable single-family homes in the SGV area. I do believe that some of this demand is driven by the Eaton fires (decreased inventory and increased demand), and possibly the political environment (speculation on interest rates and overall real estate market). I expect this heightened demand and overall competitive environment to maintain its course, or possibly increase, as we approach the Spring and Summer. Spring and Summer tend to be the busiest months for real estate.
Guidance for Displaced Families Seeking Temporary Housing
For families displaced by the fire, finding temporary housing is a pressing concern. Here are some key considerations:
Get in contact with your home insurance: Determine what your policy covers and get immediate aid from your home insurance company. Those who lost their homes or are displaced could receive compensation for temporary housing (proceeds to pay for rental) and a payout for any destroyed structures. It may also be beneficial to speak to an insurance adjuster to help your case. Please reach out if you need any contacts for relocation, insurance adjustment, or general assistance.
Assess Your Needs: Determine the size and type of housing required, proximity to work or schools, and any special accommodations needed.
Explore Various Options: Look into short-term rentals, extended-stay hotels, or staying with family and friends. Some landlords may offer flexible lease terms to accommodate displaced families. Your home insurance policy should cover some, or all, of these costs.
Verify Rental Terms: Ensure that lease agreements are clear, and be cautious of any clauses that seem unusual or overly restrictive.
Stay Informed About Rental Rates: Be aware of standard rental prices in the area to identify and avoid potential price gouging. This is the “Fair Market Rent” according to Los Angeles Housing Department for the City of Los Angeles (ex: El Sereno, Boyle Heights, Lincoln Heights, Highland Park, Eagle Rock, Silver Lake, Echo Park, Downtown, Koreatown, etc.). Note that this is a general guideline and does not apply to all markets in the Los Angeles County area.
Source: https://housing.lacity.gov/renter-protections-2
Protections Against Rental Price Gouging
In the wake of the disaster, it’s vital to be aware of regulations that protect consumers from exploitative practices:
California Penal Code Section 396: This law prohibits increasing the price of rental housing by more than 10% following a declared state of emergency. This applies to both existing tenants and new leases during the emergency period. When looking at rentals, use publicly available information on websites like Zillow, RedFin, etc. to see if a rental was previously on the market, removed, and the price increased. Here’s an example of rental history on RedFin:
Local Ordinances: Cities like Pasadena and Los Angeles have reinforced that arbitrary evictions and predatory rent increases are prohibited during this time.
Reporting Price Gouging
If you encounter instances of price gouging, it’s important to report them:
Los Angeles County Department of Consumer and Business Affairs: Complaints can be filed online or by calling 800-593-8222.
California Attorney General’s Office: Reports can be submitted through their website.
Avoiding Predatory Land Buying Practices: In the aftermath of disasters, some speculators may attempt to exploit vulnerable homeowners:
Be Cautious of Unsolicited Offers: Approach any unsolicited offers to purchase your property with skepticism, especially if they seem undervalued.
Understand Your Property’s Value: Consult with a qualified real estate professional to get an accurate assessment of your property’s worth before considering any offers. I would be more than happy to provide an opinion, this is not solicitation in any way.
Stay Informed About Legal Protections: Governor Newsom has issued executive orders to protect fire victims from predatory real estate practices, including prohibiting unsolicited and undervalued offers in affected areas.
Conclusion
The Eaton Fire has brought significant challenges to our community, but by staying informed and vigilant, we can navigate the housing market effectively. I’m committed to assisting residents in Alhambra and surrounding areas during this recovery period. Whether you’re seeking temporary housing, need help with your home insurance, or need guidance on market conditions, please don’t hesitate to reach out for support.
