According to economists at UCLA Anderson, the devastating wildfires that occurred in Los Angeles County in January could result in property and capital losses ranging from $95 billion to $164 billion. Insured losses are estimated at $75 billion, with 16,240 homes and commercial properties directly destroyed by the fires.
As a result of these losses, UCLA Anderson predicts a decline of 0.48% in LA County’s GDP for 2025, equating to approximately $4.6 billion. Local businesses and employees are expected to suffer wage loss totaling $297 million.
In the long term, if effective measures are not taken for wildfire mitigation and investment efforts do not increase substantially, Californians will face higher insurance premiums and health risks due to pollution caused by wildfires. The housing market will also be affected as rental units become less affordable immediately following the fires. This affordability issue is likely to persist if regional Housing Needs Allocation goals are not met by the county.
