Four wildfires continue to burn in Los Angeles County amid a worsening storm, prompting evacuation orders and warnings, California’s governor said. Gavin Newsom has declared a state of emergency in his fire-ravaged state.
Residents scrambled to flee the Palisades Fire in the famed Pacific Palisades enclave in January. 7, but many were forced to abandon their vehicles on the blocked roads and make the journey on foot.
The Eaton Fire in Altadena, the Hurst Fire in Sylmar and the Woodley Fire in the San Fernando Valley are also raging in the state, endangering thousands of homes in an environment many are calling “apocalyptic.”
More than a thousand structures have been destroyed and at least two fatalities and multiple burn victims have been reported, according to LA fire officials.
The causes of all four fires are unknown at this time and are currently under investigation, officials said.
Fires like these have become more and more common across the country, so how can you determine if a home you’re considering buying is at risk? And is the reward worth the risk of owning a home in a fire zone?
Climate change has changed everything
According to the Realtor.com® 2024 Climate and Housing Risk Report, approximately 5.5% of homes—worth $3 trillion—in the United States face severe or extreme risk of fire damage, and nearly 39.1% of those homes high-risk — worth $1.7 trillion — are in California.
According to a recent study, extreme wildfires have doubled in the past 20 years in frequency and size, as climate change has increasingly created conditions that are favorable for dangerous fires.
Without a doubt, it is becoming more and more difficult for Californians to obtain homeowners insurance.
Stay up-to-date with NYP’s coverage of the devastating wildfires in the LA area
At least 13% of California real estate agents had a sales transaction canceled because their clients were unable to obtain insurance in 2024, according to the California Association of Realtors.
With the state increasingly facing climate risks, Farmers Insurance, Allstate, USAA and Hartford have previously declared a pause in issuing new policies to California homeowners. State Farm stopped selling new home insurance in the state last summer and is pursuing rate hikes of up to 52% on certain residential policies.
Actor James Woods, who lost his home in the Palisades fire, posted on X that “one of the major insurance companies canceled all the policies in our neighborhood about four months ago.”
How to check if your home is in a fire zone before you buy
Realtor.com displays fire risk information for homes on the website.
To find fire hazard information, visit a listing for a property for sale on Realtor.com. Scroll down to the Environmental Risk section and you’ll find an overview of a property’s fire risk.
This information includes a Fire Factor rating on a scale of 1 to 10, where 1 represents minimal risk and 10 represents extreme risk. The score is based on a property’s cumulative fire risk over the next 30 years. The data comes from the First Street Foundation, a nonprofit organization with expertise in climate change and natural disaster risk.
Next to the Fire Factor result, you can click on Check out the Fire Factor report to see more details about that particular property.
Realtor.com also features information from the US Forest Service that compares county-level fire danger to national averages.
To see more details on current and future risks, click on Learn more link in the Understand this data section. This will open a view with details and links to resources.
Is it worth the investment?
Fire-prone areas like the Pacific Palisades, Malibu and Topanga continue to be in demand despite the fire dangers, primarily because they are simply beautiful places to live.
These idyllic areas are known for their luxury homes, beautiful beaches and incredible ocean views.
Celebrities are drawn to these affluent communities because they are close to Los Angeles and the studios for work, but far enough away to offer a private beach getaway.
Although people are aware of the dangers of fire, their desire to live in these exclusive enclaves outweighs those climate concerns.
“People are attracted by the world-class views, access to high-paying jobs and good schools for their children. The compensation for their idyllic lives is that sometimes their house burns down every decade, or comes very close to burning down. There is no place in the US that is 100% safe when it comes to natural disasters, so people roll the dice,” says Jameson Tyler Drew, president of Anubis Properties, in the Los Angeles area.
“Properties that are at high risk of fire damage are increasingly difficult and costly to insure,” adds Hannah Jones, senior economic research analyst at Realtor.com.
“Both of these forces can contribute to making homes more affordable in fire-prone areas. Interestingly, previous research found that prices have risen faster in high-risk areas, indicating high demand for these risky homes, perhaps driven by their relative affordability. “
Homebuyers must decide for themselves whether or not they are willing to take that risk.
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