$46 billion in housing was within the 2025 Los Angeles wildfire zones
$46 billion in housing was within the 2025 Los Angeles wildfire zones |
| [30-December-2025] |
One year later, home values near the fire zones have largely followed Los Angeles trends, while inventory and rents show more lasting shifts
SEATTLE, Dec. 30, 2025 /PRNewswire/ -- The Palisades and Eaton fires that burned through parts of the Los Angeles area in January 2025 took a significant human toll, including at least 30 deaths. Beyond the human impact, a new Zillow® analysis shows the fires exposed $46 billion in residential housing value within the affected areas.
Before containment, the fires burned through 40,000 acres, threatening roughly 20,000 homes — including multifamily units. Reports show that more than 11,000 single-family homes alone were destroyed. One year later, home values near areas affected by the fires are little changed, while inventory and rents have seen some lasting impacts. "The fires cut through some of the Los Angeles area's most valuable homes, where the median value approached $2 million," said Orphe Divounguy, senior economist at Zillow. "While home values nearby have dipped a bit, in line with broader Los Angeles trends, the most evident impact was on supply. The sharp increase in listings just outside the burn zones likely reflects a mix of homeowners accelerating planned sales or owners of second homes deciding to list in response to the sudden shift in local demand. Displaced homeowners who were forced to become renters and a shift in tenure choice appear to have contributed to the increase in rents relative to prices." Zillow data shows the scope of housing exposure within the fire perimeters, as of December 31, 2024:
Home values in areas within 5 miles of the fire perimeters largely followed broader Los Angeles metro trends. The median home value in this zone fell 1.7% from December 2024 to November 2025, similar to the 1.9% decline for homes in the Los Angeles metro area more than 20 miles from the fire perimeters. The clearest impacts appeared in for-sale supply near the fire zones. In the immediate aftermath, new listings within 5 miles of the fire perimeters surged 194% in January 2025 compared with December 2024 — more than double the 91% increase seen more than 20 miles from the fires — and remained 45% above pre-fire levels in November 2025. Active inventory rose 50.4% between December 2024 and November 2025, outpacing inventory growth elsewhere in the metro — inventory is up 34.8% more than 20 miles from the fires over the same period. In the rental market, median list rents showed little immediate disruption near the fire perimeters, dipping just 0.1% from December 2024 to January 2025. Over time, rents within 5 miles rose 3.4% through November 2025, compared with a 1.7% increase beyond 20 miles. According to First Street data that is available on Zillow for-sale listings, 94% of properties that burned were labeled as having "severe" or "extreme" wildfire risk. Cal Fire's Fire Hazard Severity Zone maps captured only 21% of these same properties as "very high" risk, reflecting differences in modeling approaches. Home shoppers on Zillow can access this information regarding the risk of wildfire and other natural disasters by clicking through to First Street's website via the climate risk module on all Zillow for-sale listings. About Zillow Group Zillow Group's affiliates, subsidiaries and brands include Zillow®, Zillow Premier Agent®, Zillow Home Loans℠, Zillow Rentals®, Trulia®, Out East®, StreetEasy®, HotPads®, ShowingTime+℠, Spruce®, and Follow Up Boss®. All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2025 MFTB Holdco, Inc., a Zillow affiliate.
SOURCE Zillow | ||||||||||||||||||||||
Company Codes: NASDAQ-NMS:ZG,NASDAQ-NMS:Z | ||||||||||||||||||||||
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