A new report from the UCLA Anderson Forecast suggests that the two largest wildfires that recently ravaged L.A. County — the Palisades and Eaton fires — may have caused total property and capital losses ranging between $95 and $164 billion, with insured losses estimated at $75 billion.
The report, authored by economists Zhiyun Li and William Yu, predicts a 0.48% loss in county-level GDP for 2025, amounting to approximately $4.6 billion.
The economists summarized the estimated economic impacts, acknowledging that their estimates are based on various assumptions and may be subject to future revision.
Additional highlights from the report findings:
- Local businesses and employees in the affected areas could face a total wage loss of $297 million.
- Without substantial and effective wildfire mitigation efforts and investments, Californians will face increasingly higher insurance premiums and growing health risks from wildfire-related pollution.
- Los Angeles housing markets, and rental units in particular, will become increasingly unaffordable.
- All wildfire mitigation investments will be justified, considering the astronomical costs associated with wildfires.
► For full details on property loss, the impacts on home value and housing affordability, home insurance markets in California, and more, read the full report on the UCLA Anderson website.
