Los Angeles Wildfires Result in Up to $164 Billion in Property and Capital Losses
Published on Tuesday by the University of California, Los Angeles (UCLA), the report estimates that insured losses from the Palisades and Eaton fires could total around 75 billion dollars.
Los Angeles: The two largest wildfires that recently devastated Los Angeles County may have caused property and capital losses ranging from 95 billion to 164 billion US dollars, according to a new report.
Published on Tuesday by the University of California, Los Angeles (UCLA), the report estimates that insured losses from the Palisades and Eaton fires could total around 75 billion dollars.
The study, authored by UCLA Anderson Forecast economists Zhiyun Li and William Yu, also predicts a 0.48-percent loss in county-level GDP for 2025, amounting to approximately 4.6 billion dollars. Additionally, local businesses and employees in the affected areas are expected to face a total wage loss of 297 million dollars.
Economic Impact and Rising Risks
“Without substantial and effective wildfire mitigation efforts and investments, Californians will face increasingly higher insurance premiums and growing health risks from wildfire-related pollution,” the report warns. It also notes that Los Angeles housing markets, especially for rental units, will become increasingly unaffordable.
UCLA Anderson Forecast is considered one of the most widely watched and frequently cited economic outlooks for California and the nation, according to the UCLA Anderson School of Management’s website.
Catastrophic Wildfires in Los Angeles County
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Last month, Los Angeles County, the most populous county in the United States, experienced the worst wildfires in its history. The Palisades and Eaton fires killed at least 28 people and destroyed more than 16,000 structures. The fires scorched over 23,700 acres (95.9 square kilometers) and 14,000 acres (56.7 square kilometers), respectively.
In addition to the immense property damage, the wildfires have taken a toll on the region’s education system. Over a dozen schools were severely damaged or destroyed, and the cost of rebuilding is expected to run into the hundreds of millions of dollars. Recovery from the fires is anticipated to take years.
School Districts Hit Hard by Wildfires
At least 12 schools in Los Angeles County suffered significant damage, with five campuses completely destroyed, according to CalMatters, a nonprofit news organization focused on California local issues. Los Angeles Unified School District, the nation’s second-largest school system, lost two elementary schools in Pacific Palisades, while Palisades Charter High School was heavily damaged. Additionally, three elementary schools in Pasadena and Altadena were destroyed.
