The two largest wildfires that recently ravaged Los Angeles County may have caused total property and capital losses of as much as 164 billion U.S. dollars, according to a new report.
The report published on Tuesday by the University of California, Los Angeles (UCLA) suggests total property and capital losses caused by the Palisades and Eaton fires could range between 95 billion dollars and 164 billion dollars, with insured losses estimated at 75 billion dollars.
The report, authored by UCLA Anderson Forecast economists Zhiyun Li and William Yu, predicts a 0.48-percent loss in county-level GDP for 2025, amounting to approximately 4.6 billion dollars, and a total wage loss of 297 million dollars for local businesses and employees in the affected areas.
“Without substantial and effective wildfire mitigation efforts and investments, Californians will face increasingly higher insurance premiums and growing health risks from wildfire-related pollution,” said the report, adding that Los Angeles housing markets, “in particular for rental units, will become increasingly unaffordable.”
UCLA Anderson Forecast is one of the most widely watched and often-cited economic outlooks for California and the nation, according to UCLA Anderson School of Management’s website.
Last month, Los Angeles County, the most populated county in the United States, experienced the most catastrophic wildfires in its history. The two deadly major wildfires killed at least 28 people and destroyed over 16,000 structures. The Palisades and Eaton fires scorched over 23,700 acres (95.9 square km) and 14,000 acres (56.7 square km), respectively.
