The average home destroyed in the LA wildfires was worth $3.7M — city faces an estimated $51.7B in total losses
A new report from Redfin reveals the staggering scale of the financial toll, especially in affluent neighborhoods like the Pacific Palisades, where the typical home destroyed by the fires was worth $3.7 million.
In total, roughly 11,000 homes were damaged across the city, resulting in an estimated $51.7 billion in property losses, according to Redfin's analysis of data from the Los Angeles City Council. Nearly 100 of the homes affected were previously valued at $20 million or more.
7 Wildfires that swept through Los Angeles earlier this year left behind not only scorched earth, but billions of dollars in damage across some of the city's most exclusive enclaves.
REUTERS
7 A new Redfin report pegs the total toll at $51.7 billion, with the average destroyed home valued at $3.7 million.
AP
Many of those ultra-high-end properties were located in the Palisades, a celebrity-favored coastal enclave west of downtown. The so-called Palisades Fire, which tore through the area, has now been ranked by Cal Fire as the third-most destructive wildfire in California's history.
7 Nearly 100 properties worth $20 million or more are among the losses.
John Chapple for NY Post
7 The Pacific Palisades bore the brunt, with the so-called Palisades Fire now ranked the third-most destructive in California history.
John Chapple for NY Post
The report does not include damages from the separate Eaton Fire in Altadena, a suburban neighborhood north of the city, suggesting the actual financial impact of January's wildfires is likely even higher.
'A lot of people who lost their homes are renting while they work through the insurance claim process, and haven't figured out whether, when or where they'll buy again,' Greg Eubanks, a Redfin agent based in Santa Monica, noted in the report.
While some property owners in Altadena have found buyers for their fire-damaged lots, those in the Palisades are facing a tougher market.
7 Rebuilding efforts have been slow, with residents renting and grappling with stalled insurance claims, while vacant lots struggle to sell due to sky-high price points.
MediaNews Group via Getty Images
7 'It's a bit of a tough sell because infrastructure hasn't been rebuilt yet — there are still no grocery stores,' said Redfin agent Greg Eubanks.
Lux Blue – stock.adobe.com
7 The report notably excludes damage from the nearby Eaton Fire, suggesting the true financial impact may be even greater.
AFP via Getty Images
'Some people whose homes burned in the Palisades have put their vacant lots up for sale, but those aren't selling as quickly as the lots in Altadena because the price point in the Palisades is so much higher, which is a barrier for investors,' Eubanks said.
Recovery has been further slowed by the sluggish return of typical amenities.
'It's also a bit of a tough sell because infrastructure hasn't been rebuilt yet—there are still no grocery stores,' Eubanks added.
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