F
our wildfires continue to rage out of control in Los Angeles County, fueled by a worsening windstorm and prompting evacuation orders and warnings. California Governor Gavin Newsom has declared a state of emergency as the fires spread rapidly, endangering thousands of homes.
The Palisades fire in Pacific Palisades, the Eaton fire in Altadena, the Hurst fire in Sylmar, and the Woodley fire in the San Fernando Valley are all burning out of control. Residents attempting to flee the Palisades fire were forced to abandon their vehicles on jammed roadways and make the journey on foot.
Over 1,000 structures have been destroyed, and at least two fatalities and multiple burn victims have been reported. The causes of the fires remain unknown and are currently under investigation.
Climate change has increased the frequency and magnitude of extreme wildfires in recent years, with nearly 40% of high-risk homes worth $1.7 trillion located in California. According to Realtor.com's 2024 Housing and Climate Risk Report, approximately 5.5% of US homes face severe or extreme risk of fire damage.
Homeowners insurance is becoming increasingly difficult to obtain in California, with at least 13% of real estate agents reporting that sales transactions were canceled due to clients' inability to find insurance. Major insurers such as Farmers Insurance and State Farm have paused issuing new policies to homeowners in the state.
Realtor.com displays wildfire risk information for homes on its website, including a Fire Factor rating from 1 to 10 based on a property's cumulative risk of wildfire over the next 30 years. Homebuyers can use this information to assess the risks associated with purchasing a home in a fire-prone area.
Despite the risks, luxury areas such as Pacific Palisades and Malibu remain popular due to their beautiful beaches, ocean views, and proximity to Los Angeles. Celebrities are drawn to these communities despite the fire risks, prioritizing their desire for an idyllic lifestyle over climate concerns.
Homebuyers must weigh the risks and rewards of purchasing a home in a wildfire-prone area, considering factors such as insurance costs and property values. As one real estate expert notes, "There is no place in the US that is 100% safe when it comes to natural disasters, so people roll the dice."
