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pproximately 3 million homes in the US are at risk of wildfires, with over two-thirds concentrated in just three states. According to a report from Cotality, these properties have a combined reconstruction cost value (RCV) of $1.3 trillion.
Of the threatened homes, 1.2 million face a "very high risk," while 800,000 are at high risk and 500,000 at moderate risk. California has the largest number of vulnerable homes, with nearly 1.3 million properties facing potential disaster, totaling $796.1 billion in rebuilding costs.
Colorado ranks second on the list, with 318,783 properties at moderate or greater wildfire risk, worth $146.2 billion to rebuild. Texas follows closely behind, with 243,136 homes at elevated fire risk and $95.4 billion in reconstruction costs.
Oregon is the nation's fourth most wildfire-exposed state, with around 128,000 properties facing potential disaster and $47.5 billion in rebuilding costs. Arizona rounds out the top five, with nearly 124,000 vulnerable homes and $39.2 billion in combined RCV.
The common factor among these states is a large number of homes situated in the Wildland-Urban Interface (WUI), where residential areas meet forested or underdeveloped land, increasing their risk levels.
Decades of fire suppression have left forests densely packed with combustible materials, while population growth and hotter, drier seasons contribute to increased wildfire risks. California's housing markets are among the most expensive in the US, suggesting buyers are willing to take on wildfire risks for desirable areas.
Los Angeles has the second-highest median list price in the US at $1.148 million, followed by San Francisco and San Diego. Seven of the top 10 most expensive ZIP codes in the US are located in California, including Bel-Air, Beverly Hills, and Malibu.
Metros across other Western states also face concerns, with Austin, TX; San Antonio, TX; Denver; Colorado Springs, CO; Bend, OR; Flagstaff, AZ; and Prescott, AZ among the 15 most at-risk cities.
