Residential Real Estate News
Catastrophic Wildfires Devastating Tens of Billions of Dollars of Southern California Properties
Property Damage Estimated at $50 Billion and Growing
According to new data from CoreLogic, the Palisades Fire ignited on January 7, 2025 at approximately 10:30 a.m. PST in Pacific Palisades, California. Driven by fierce winds exceeding 40 mph, the fire quickly consumed around 200 acres and continued spreading at an alarming pace.
By the morning of January 8, the fire had scorched 2,921 acres, with containment efforts yielding no progress. Authorities issued evacuation orders for about 30,000 residents as multiple homes were engulfed in flames.
Early Wednesday morning, evacuation zones were extended to include parts of Malibu, compounding the challenges for a region still recovering from the Franklin Fire in December.
Strong winds and dry conditions have significantly exacerbated the situation. Wind gusts of up to 90 mph have been reported in some areas (Figure 1), marking the most extreme conditions since the 2011 windstorm in Los Angeles County.
Regional Wildfires Intensify
In addition to the Palisades Fire, other significant wildfires are raging across the region. The Eaton Fire in Altadena has burned 2,227 acres, while the Hurst Fire in Sylmar has consumed 505 acres. Both fires have also prompted evacuations in nearby neighborhoods.
Dr. Tom Jeffery, senior hazard scientist at CoreLogic, noted, "The Santa Ana winds driving these fires are not unusual, but their current intensity is exceptional."
All three active wildfires remain completely uncontained. While the exact number of destroyed homes is yet to be determined, numerous structures have been lost. Winds of 30-50 mph are expected to persist, grounding tanker aircraft and hindering firefighting efforts. Forecasts predict continued strong winds and single-digit relative humidity, further fueling the fires' rapid spread.
Wildfire Risk in Urban and Wildland Areas
CoreLogic estimates over 456,000 homes, valued at nearly $300 billion in reconstruction costs, face moderate or greater wildfire risk across the Los Angeles and Riverside metropolitan areas.
These figures represent the general wildfire risk within the region and are not specific to the current fires. Data specific to the ongoing events will become available once fire perimeters are clearly established.
Urban expansion has led to the growth of the wildland-urban interface (WUI), increasing fire risks where human development meets wildland areas. Effective strategies to mitigate this risk include:
- Using fire-resistant building materials.
- Maintaining defensible space around properties.
- Implementing proactive land management to reduce vegetation and fuel loads.
- Investing in emergency planning, community education, and early fire detection systems.
Conditions Driving the Palisades Fire
Dr. Jeffery explained that the area affected by the Palisades Fire had been classified as abnormally dry since early December and recently transitioned into a moderate drought within the past 10 days.
"The region has been drying steadily following late 2024 seasonal precipitation," said Dr. Jeffery. "The Santa Ana winds, with reported speeds of 50-60 mph or more, are intensifying fire activity and hindering suppression efforts by grounding tanker aircraft and helicopters."
The Palisades area has experienced several notable fires in the past, including the 2019 Palisades Fire, the 2017 Topanga Fire, and the 2021 Palisades Fire, which burned 1,203 acres in an undeveloped region north of the community.
