15,841 Homes Destroyed Costing $40.3 billion In LA Fires
Although the LA fires are still burning, the initial tally of residential properties destroyed is almost 16,000 at a total property loss of $40 billion. This data is for the Eaton and Palisades fires which began January 7, 2025. It was provided by Realtor.com
The reasons that the costs are so high is that there were a number of homes burned, which adds to the fact that most of these were expensive homes with median prices of about $2 million.
*US Wildfire Dangers
*America’s South Hit By Drought
“The Los Angeles area will likely see an uptick in local market home search activity as displaced families hoping to stay in the area look for a place to settle while they evaluate the damage and pursue repairs or rebuilding. The expected increase in demand coupled with the loss of for-sale supply could push rents and home prices higher in the very near term,” Realtor.com added.
Many of the people who lost homes will leave the area, either temporarily or completely. This will affect the property values in places which include ultra-rich Malibu. Without a high tax base, city services and school budgets could be hit hard. And, there is no way to lure new residents until homes are rebuilt.
Home Insurance Costs
Another challenge will be home insurance. It will skyrocket in the areas considered likely candidates for fires in the future. This will also make homes, both new and old, with high insurance rates difficult to sell.
Realtor.com also points out that there has been a shortage of homes in the LA area for years.
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