T
he Los Angeles-area wildfires are still raging, with the National Weather Service warning of a "particularly dangerous situation" due to strong winds. The Palisades and Eaton fires have already destroyed over 15,000 structures, including many homes, which is having a ripple effect on the region's housing market.

    In areas like Altadena, where many homes burned down, real estate agent Lexie Newman notes that the sudden reduction in affordable supply will likely drive up prices. "We already had an inventory problem and an inventory shortage," she said. "So, supply and demand is very possibly going to shift and have housing become more expensive than it already is."

    In nearby markets like Pasadena or Alhambra, buyers may struggle to find affordable options. Meanwhile, in areas farther away from the fires, such as Moreno Valley, local real estate broker Kama Burton expects to see immediate economic fallout due to rising insurance costs.

    Historically, wildfires have led to a surge in demand for housing in low-risk areas. After the 2017 Wine Country fires, Sacramento real estate broker Erin Stumpf reported that many fire victims sought more affordable options in suburban areas with lower fire risk. However, these areas are becoming increasingly scarce and expensive.