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Real Estate
29 January 2025

Victorian Family Lists Home For Just $5,000

Hope amid housing crisis as price gouging rises after wildfires.

The recent housing market trends are throwing many potential renters and buyers for a loop, showcasing bizarre instances like one family selling their house for just $5,000, alongside rampant price gouging affecting countless displaced individuals seeking housing. While the notion of snagging a home for such a low price might seem like pure luck, the reality is much more nuanced.

Meet the Shiells family from Bamawm, Victoria, who are ready to part with their three-bedroom house for just $5,000. Brenton Shiells, the owner, happily shared, "It's only problem is it would need restumping... but everything in there is working." This generous offer isn’t without caveats; buyers must relocate the house themselves. The family is preparing to move to their new home, which they are currently building, and instead of demolishing their old one, they hope to facilitate affordable housing for someone else. After living there with his wife Ashlee and two kids, they are eager to see the house contribute to another family's success.

What’s more remarkable is the inspiration behind this unusual sale. Brenton had noted similar relocations on social media and remembered how the house used to film the cult Australian film The Castle underwent relocation itself not long ago. He is optimistic about the potential for recycling homes. "After all, it can save costs for families who might be spending upwards of $500,000 to build new," he remarked.

Such affordable offers can be refreshing, especially against the backdrop of the current housing crisis following the California wildfires. Governor Gavin Newsom declared state emergencies on January 7, 2025, to tackle the destruction of nearly 15,000 homes. Grocery and housing prices skyrocketed as demand surged, leading to cases of price gouging, where landlords attempted to profit by raising rents by sometimes more than 100% to capitalize on desperate requests for accommodation.

Illegal price gouging practices have surfaced prominently throughout Los Angeles, where providers exploit the vulnerability of those displaced by natural disasters. Under California Penal Code Section 396, landlords may not raise rents over 10% for at least 30 days post-emergency declaration, yet numerous complaints have risen about unlawful rental hikes. Such activities prompt concerns about ethical practices, with illegal rent spikes jeopardizing low-income families attempting to secure housing.

The intensity of these events has caught the eye of local authorities, noting enormous discrepancies between previous rental pricing and new inflated rates, claiming this might result from companies recognizing the opportunity to drive profits. For example, if individuals seek rentals previously listed at $2,000, many now face unwarranted expenses of $4,000 at some sites. The cruel irony here? Many families are scrambling to find roofs over their heads and now must contend with unaffordable rents.

Compounding the issue are illegal bidding wars for available rental properties, which is yet another challenge many tenants must navigate. Real estate agents, like those at Rent. and Redfin, have been working hard to find housing options for those affected, all the meanwhile combating the growing trend of price gouging. Agents have taken proactive measures to assist individuals by verifying listings and educating renters about their rights when facing sudden rental increases.

The community response has been heartening, with resources available to support those recovering from the crisis. Housing aid efforts for wildfire victims range from temporary accommodations to mortgage relief. Local activists implore residents to report price gouging, directing complaints to authorities and the California Attorney General. By rallying together, those affected can amplify their concerns and challenge unscrupulous landlords who attempt to profit off misfortune.

While the idea of paying $5,000 for a house brings excitement, the need for vigilant protection against predatory pricing remains high, especially during times of crisis. It’s clear communities facing disaster must remain informed and proactive—whether hunting for unique housing options like the Shiells' house or defending against the rising wave of price gouging—and find balance within their ever-shifting housing markets.