Wildfires in Los Angeles County are putting over $40 billion worth of homes at risk, says a new report from Realtor.com®.
The Eaton and Palisades wildfires, which began on January 7, have spread to cover more than 15,800 homes, totaling $40.3 billion in value.
- Homes in the Eaton fire area have a median value of $1.3 million.
- Homes in the Palisades fire area are typically worth $3 million.
- L.A. County’s average home value is lower at $870,500.
Not All Homes Burned, But Damage Is Huge
Not every home inside the fire zones has been destroyed, and in some cases, the land itself is still worth millions even if the house is gone. Experts estimate that rebuilding costs for all affected properties, including businesses, exceed $13 billion.
The fires are mostly under control, but they’ve already caused massive damage.
Together, the burned areas account for 2% of the total property value in L.A. County.
Housing Shortage Gets Worse
Los Angeles was already struggling with a major housing shortage.
Over the last decade, the city added 290,000 new households but only built 107,000 single-family homes.
That’s a gap of nearly 200,000 homes.
Although more apartment buildings have been constructed, the demand for homes remains high, keeping competition tough and prices sky-high.
By the end of 2024, the number of homes for sale in L.A. was down 36.1% compared to 2019.
Fire Victims Could Push Rents Up
L.A. already has some of the highest rents in the U.S.. In December, the median rent for a 0-2 bedroom home was $2,750, making it the fourth most expensive city after New York, Boston, and San Jose.
Rental vacancies are higher than they’ve been in 10 years, at 5.9%, which could help families displaced by the fires find temporary housing.
But with more people needing homes, rents are likely to rise.