T
he recent wildfires in Southern California have sparked concerns about their impact on the state's real estate market. Realtors are bracing for increased costs of living, including higher construction prices and insurance premiums. Heather Bergen, a Humboldt Association of Realtors representative, notes that even areas with low fire risk will see higher premiums due to the statewide nature of the market.

    Following the 2018 Camp Fire, there was an uptick in housing demand as people lost their homes, leading to increased prices and relocation to more affordable areas. Insurance costs also skyrocketed, leaving some without coverage. California's already tight housing market is expected to be further strained by out-of-town buyers seeking refuge from fire-prone areas.

    Bergen points out that the state's housing supply is limited, making it difficult for communities to absorb an influx of new residents. As a result, wildfires will have far-reaching effects on the market, driving up costs and potentially leading to more regulations for newly built homes, including fire-hardening requirements.