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UCLA Anderson Projects Losses Up to $164B from LA Wildfires
Total property and capital losses from January’s catastrophic wildfires across Los Angeles County could range between $95 billion and $164 billion, with insured losses estimated at $75 billion, according to UCLA Anderson economists. The fires directly destroyed 16,240 homes and commercial properties, primarily in the Palisades and Eaton fires.
Because of the fires, UCLA Anderson projects a 0.48% decline in LA County GDP for 2025, amounting to approximately $4.6 billion. Local businesses and employees will have suffered a total of $297 million in wage loss.
Longer term, UCLA Anderson said, “Without substantial and effective wildfire mitigation efforts and investments, Californians will face increasingly higher insurance premiums and growing health risks from wildfire-related pollution.” Housing markets, especially for rental units, will become less affordable in the short term. The affordability issue will likely persist in the long term if the county fails to meet its regional Housing Needs Allocation goals.
- ◦Economy
