TL;DR

Los Angeles rents are skyrocketing to $40,000/month after the fires, and some are trying to profit from the disaster, raising concerns about exploitation and potential social instability.

Story

“Los Angeles rents hit an eye-watering $40,000 a month.” That headline sounds like something out of a dystopian movie, but it’s real. Thanks to the recent fires, homes are scarce, and some landlords are jacking up prices. It’s like a real-life game of Monopoly where the “get out of jail free” card is made of solid gold, and only a select few can afford it.

My gut churns when I see this. It reminds me of stories from past crises. Remember the 2008 housing bubble? People were scrambling for homes, prices went haywire, and then… boom. Lots of folks lost everything. This kind of price gouging feels eerily similar.

What’s even more disturbing are comments online. Some people are talking about how to profit from this disaster. “Invest in rebuilding efforts” they say, which sounds nice until you realize it often translates to “make a quick buck off someone else’s misfortune.” This isn’t just capitalism; it’s disaster capitalism.

It’s easy to blame “supply and demand,” but that simplifies a complex issue. When basic necessities like housing become unaffordable due to an emergency, it creates a breeding ground for exploitation. This isn’t a free market; it’s a market distorted by desperation.

Think of it like this: If a hurricane hits and the only store selling bottled water suddenly raises prices tenfold, is that just “supply and demand?” Or is it taking advantage of people in a vulnerable position?

Another comment mentioned buying a similar home for the same monthly expense. Sounds reasonable, right? But remember, buying a home involves a lot more than just monthly payments—down payment, property taxes, and unexpected repairs can quickly add up.

The idea of people auctioning off their hotel rooms is equally frustrating. It’s like selling life rafts on a sinking ship. Sure, you might make a profit, but at whose expense?

All this makes me worry about social instability. When people can’t afford basic necessities, tensions rise. History is full of examples of how economic hardship can lead to unrest. It’s a scary thought.

Advice

Don’t let emotions drive your financial decisions during a crisis. Be wary of “investment opportunities” that capitalize on others’ misfortune. Stick to sound financial principles and avoid get-rich-quick schemes.

Source

https://www.reddit.com/r/wallstreetbets/comments/1i27hyk/la_rental_hits_40000_a_month_as_fires_roil/