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Will a quick solution circumvent a lengthy Court battle? Will L.A. & Blueground recognize the harm done (planned) due to government & corporate budgets & financial plans.
Headlines blare "Rental housing startup Blueground" and "venture capital-backed startup" as the accompanying articles detail how both the California Attorney and L.A. City Attorney have filed lawsuits against the company for " illegally jacked up rents for furnished apartments in Los Angeles — more than 50% in one example — after last month’s wildfires that destroyed thousands of homes" as well as "gouging enforcement actions". People of the State of California v. Blueground US Inc., California Superior Court (Los Angeles County). Case # 25STCV02951 Case Document Images are available 1-5pages $1/page 6+pages .40/page. Max $40/document
However, the company counters the examples cited were increases on January 7th before the Pacific Palisades fire had been elevated to a state-of-emergency declaration. Although, prior warnings by various fire chiefs of the precarious state of the L.A. Fire Department, in the shadow of budget cuts, warrants culpability for putting residents in a situation where housing would become a commodity.
The company was established in 2013, hardly a start-up any longer. The December 2023 summary, as detailed on their website touts "Blueground is the largest global network of furnished rentals for 30+ days in the world." Elsewhere, "2024 was huge for Blueground — 20,000+ homes in 46+ cities, with 10 new franchise markets including Tokyo, Bangkok, Seoul, and Riyadh and 7,000 units added on our Partner network from the best furnished rental operators out there."
The optics for a company to mandate rent increase, in the shadows of flames visible by much of the city, seems illogical.
Did local management lack of life experiences view it as a short-term opportunity to start Q125 with a bankroll, given the large number of people expected to be temporarily evacuated.
Blueground returned to December 2024 market rental rates by January 10th, when it was clear the 400+ residences in Pacific Palisades and 800+ in Altadena were uninhabitable or gone.
Will a lengthy-drawn-out court case benefit those who need long-term housing now? Or is it a platform for political careers?
Time will tell if the attorneys work out a quick solution indicative of both the City & Blueground recognizing how much harm was done to innocent people caught up in the complications of government and corporate budget and financial plans.
California Attorney General Rob Bonta has also filed price-gouging enforcement actions in the wake of the L.A. fires.
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