Relentless California wildfires fuel Los Angeles housing crisis driving up rents, prices
"Los Angeles was already in a housing shortage before the wildfires, so the disaster will cause an extreme shortage of homes to rent or buy," said Laura Adams with AceableAgent, an online educational platform and resource for agents.
Wildfires' wake: California faces deeper housing scars
Southern California's recent wildfires have exacerbated the housing crisis, causing rental prices and home values to skyrocket. This surge is making it extremely difficult for families displaced by the fires to find stable housing as they try to rebuild their lives. FOX Weather is joined by Laura Adams, senior analyst at AceableAgent.com.
LOS ANGELES – The recent infernos in Southern California have ignited a housing crisis, with rental prices exploding and home values reeling across the region, according to one senior real estate analyst.
"The Los Angeles rental market is experiencing a surge in demand from those who lost their homes or can’t return to them after getting severe damage from recent wildfires," said Laura Adams with AceableAgent, an online educational platform and resource for agents.
INSURED LOSSES FROM LOS ANGELES FIRESTORM ESTIMATED TO BE IN EXCESS OF $28 BILLION
Altadena mother and son lose home to Eaton Fire
Brenda King lived in Altadena with her son when the Eaton Fire destroyed her home and many others in her city. She describes what recovery has been like in the past few weeks.
The long-term consequences of the ongoing wildfires on the region's real estate market remain to be seen. However, the disaster has clearly created a significant and complex set of challenges for residents across the city. With an estimated 10,000 homes destroyed and 40,000 residents displaced, real estate agents are seeing a perfect storm.
"The increased demand and loss of available homes will cause a spike in housing prices to rent or buy in the foreseeable future," Adams notes.
WAITING FOR DADDY: TOLL OF CALIFORNIA WILDFIRES HANGS HEAVY ON FIREFIGHTERS' FAMILIES
A for sale sign remains as homes and cars smolder during the Eaton Fire in the Altadena area of Los Angeles County, California on January 8, 2025. (JOSH EDELSON/AFP / Getty Images)
Neighborhoods untouched by the flames are experiencing a significant influx of displaced residents seeking shelter.
"So, they will see an increase in demand and prices, such as rents climbing hundreds or thousands of dollars a month, depending on the location, size and amenities," Adams told FOX Weather.
Some areas of Los Angeles have rent control that limits how much a landlord can increase the rent when an existing lease ends. Also, according to the Los Angeles County Department of Consumer and Business Affairs, the price of goods and services, including rental housing, hotels and emergency supplies, can’t be hiked more than 10% during an emergency.
Consumers are encouraged to report any suspected price gouging to the California Attorney General.
Drone video shows apocylaptic scenes in Malibu after wildfire
Malibu was ravaged by the Palisades Fire, and now, remnants of the homes along the Pacific Coast Highway are left behind. Drone video shows the destruction in the daylight.
"Los Angeles was already in a housing shortage before the wildfires, so the disaster will cause an extreme shortage of homes to rent or buy," Adams said.
As insurance claims are submitted and paid to homeowners for their losses and temporary housing, many will be able to begin repairs and new construction. However, the process could take several years, depending on FEMA assistance, the local permitting process and the availability of skilled labor, Adams adds.
STRANGERS GIVE HOPE TO LOS ANGELES SINGLE MOTHER AFTER HURRICANE OF FIRE TAKES EVERYTHING
Woman flees Palisades Fire with her toddler
Melanie Bonhomme is a single mother who lost her home to the Palisades Fire in Los Angeles. She fled just in time to escape the fire with her 4-year-old son. Now, Bonhomme is trying to figure out where to go next.
Yet the path forward for seniors is uncertain. According to Adams, many will need to weigh the financial feasibility of rebuilding against the appeal of relocating to more manageable living situations, such as low-maintenance condominiums.
As firefighters gain the upper hand against the wildfires burning across the Los Angeles area for three weeks, with the trio of major blazes now at least 95% contained, a new threat looms: mudslides. While much-needed rain has finally fallen, effectively dousing the flames, it has also saturated the scorched Earth, increasing the risk of devastating mudflows – likely damaging additional homes.