On January 7, 2025, a devastating catastrophe broke out on the West Coast. Multiple fires erupted in the state of California, the largest being the Palisades Fire, spanning 23,713 acres, and the Eaton Fire another 14,021 acres. Other fires included the Archer, Woodley, Sunset, Auto, Kenneth, Lidia and Hurst fires which together consumed 2,399 acres.
The direct cause of the fires is unknown but the extreme wind conditions are what made the fires so widespread and devastating.
While all fires have been contained by now, their harmful impact on the people of Los Angeles remains a pressing topic.
The fires destroyed more than 12,401 structures and according to JPMorgan’s estimate, total economic losses could reach up to $250 billion from the fire destruction. The fires left many California residents homeless and searching for somewhere to stay amidst the already prevalent California housing crisis.
The housing crisis is categorized by a lack of available housing options, which builds demand and drives up prices and is currently exacerbated by the thousands of newly homeless citizens.
Economist Joel Berner, working for Realtor.com, spoke to FOX Business in an interview and said that rental prices rose considerably from January 4 to January 11. According to Berner, in Santa Monica southwest of the Palisades Fire, rents in one zip code rose by 33.9%, and in others, 23% and 20%.
California officials are attempting to minimize skyrocketing prices which is causing even more grief for the fire victims. Tom Bannon, the CEO of the California Apartment Association made a statement to the public saying, “Raising rents beyond legal limits during a declared state of emergency is illegal and unconscionable.” Unfortunately, the scramble for rentable homes that ultimately incites bidding wars cannot be helped due to the scale of the demand for housing.
For more information:
California Wildfires: What We Know about l.a.-Area Fires, What Caused Them, Who Is Affected and More
California’s Wildfires Will Worsen LA’s Affordable Housing Crisis
Governor Extends Protections against Rent-Gouging Tied to L.A. Firestorms
LA Wildfires Drive Surge in Rental Housing Prices, Prompting Price Gouging Concerns
