Wildfire Damage Hits $52B in Los Angeles as Rebuild Efforts Stall

Massive Damage from January Fires

The Real Deal reports that Redfin analyzed nearly 11,000 homes inspected after the January wildfires to assess the extent of wildfire damage. It matched each parcel to its December 2024 property value. The analysis showed losses nearing $52B.

Most of the affected properties were single-family homes. Many were completely destroyed. Redfin found that the average home was worth $3.7M and measured about 2,916 SF.

The Palisades fire alone now ranks as the third-most destructive in California history, according to state officials.

Breakdown of the Impact

The fires damaged about 36.7M SF of residential space. Nearly 100 of the homes were worth over $20M before the fires. Many homes dated back to the 1950s, adding to their vulnerability.

Residents Want to Rebuild—but Not at Any Cost

Despite the scale of destruction, most homeowners plan to rebuild. In a May survey by Project Recovery, 79% of Palisades residents and 88% in the Eaton fire zone said they intend to return.

However, time matters. If rebuilding takes more than three years, 70% of Palisades residents and 63% of Eaton respondents may leave for good. Many cited weak leadership from city and county officials as a top concern.

Rebuilding Moves Slowly

As of July, Los Angeles County had issued only 127 rebuilding permits in the fire zones. The slow pace has added to homeowner frustration.

Why It Matters

Luxury residential markets in California now face rising climate risk. These fires show how quickly wildfire damage can erase billions in property value. They also highlight the need for faster, more coordinated recovery plans.

What’s Next

The city must speed up approvals and guide residents through the rebuilding process. With a housing shortage and high property values, the stakes are high. Los Angeles’ response could shape wildfire recovery models across the state.