Disaster Response in Focus: Lessons and Questions from Post-Wildfire Los Angeles

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Wildfire | Photo Credit: Malachi Brooks (Unsplash)

Wildfire | Photo Credit: Malachi Brooks (Unsplash)

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Since January 7, the Los Angeles community and beyond has been grappling with the devastating effects of record-breaking wildfires. While it has only been weeks since the fires have been controlled, the initial numbers are staggering. Reports estimate property and capital losses could reach $164 billion, with wage losses potentially at $297 billion. As of early February, over 62 square miles have burned, an area larger than both San Francisco and New York City, with 29 fatalities, making it among the deadliest fires in state history. The extent of damage and losses to wildlife and domesticated animals remain unknown. As always, our hearts go out to all those affected in ways both big and small by the destruction. Yet as we begin to question what is next, whether it is rebuilding or relocating, it is important to take this moment to understand both the climate and real estate realities that led to this disaster and what is at stake moving forward, both in Los Angeles and beyond. 

The Inevitability of Climate Disaster. In Los Angeles, the finger pointing has already begun, from those who blame Governor Newsom, an “underfunded” fire department, to the “poor” urban planning of narrow one-way streets and water conservation mismanagement. And while there is likely enough blame to go around, the stark reality is that the nature of climate-related disasters are likely to be more intense and more frequent than any time in human history. In the case of Los Angeles, drought conditions and the Santa Ana winds combined to produce deadly wildfire results, but unfortunately these types of lethal climate combinations are likely to multiply throughout the United States and beyond. In 2024, hurricanes, wildfires, heat waves and monsoons were all more damaging than years prior, forcing scientists, planners, governments and homeowners to wonder what’s next. For homeowners and real estate developers, this means not only practicing conscious and protective design, but most importantly, a comprehensive insurance policy.

Disaster for Real Estate. Insurance has long been a “must have but hopefully never need” type of purchase for homeowners and real estate owners, but in the face of disaster the insurance industry has become front and center. In the aftermath of the recent fires many were devastated to learn that tens of thousands of Californians have lost home insurance coverage over the past few years. In addition, for those who did have coverage, payouts have gotten so low that many homes will still take huge losses. On top of this, companies like State Farm are requesting emergency 22% insurance rate hikes to cover the cost of reimbursement for policy holders. While California has been spotlighted due to the fires, other places like Florida and North Carolina are also seeing rising non-renewal insurance rates, in the face of increasingly destructive hurricane and rainy seasons. In a recent U.S. Treasury report, the federal government emphasizes that while a home typically represents the greatest investment and asset for most Americans, the cost to protect it and the associated risks have never been higher in 2025.

California | Photo Credit: Thom Milkovic

California  | Photo Credit: Thom Milkovic

What Does a Climate-Safe Future Look Like? With or without insurance payouts, many Los Angelenos are now facing the question of whether to rebuild or to relocate. In contemplating this, it is important to ask whether reconstruction, even following the best practices, is really a socially responsible, or healthy option. Climate events that were once thought of as “once in 100 years” are now occurring with more and more frequency, making it highly likely disaster will strike again. Beyond the physical risks of a second disaster, evidence from post-Sandy reconstruction shows that those who stay and choose to rebuild often live under more stress and anxiety than those who relocate, only adding to the trauma of survivors. Of course, this decision is complicated by many factors: some may be financially unable to relocate, as marginalized communities are often disproportionately impacted by disaster, and even for those that can, there are place-based social structures that are difficult to part with. Trust, place-based support groups such as faith communities or school-based organizations for children and parents, and general feelings of belonging, are just a few of the things that cannot be replaced, refinanced, or relocated, yet have a tremendous impact on health and happiness. In the past few years, FEMA has promoted a community-driven relocation program, an effort to engage in planned, comprehensive, resident-driven relocation for entire communities to move out of disaster zones. While this, in theory, is a promising solution, in practice it is a process that takes time, effort, and planning– all things disaster victims often do not have. 


Moving Forward. In  Los Angeles, it may take years for  communities like the Pacific Palisades and others to resemble anything close to what existed in 2024, and in that time, will another fire strike? As hurricane season approaches, what lessons on disaster response, recovery, and reconstruction can be shared with Gulf coast residents who will surely face similar questions in the months (and years) to come? With rising insurance nonrenewal rates, who will fund disaster recovery? All of these questions, many of which have no clear answers, have come front and center for the real estate and homeowners, and will remain so, especially as climate change intensifies. While developers can and should continue to prioritize climate-safe design strategies tailored to local needs, such as defensible open space and fire-resistant architecture in California and elevation practices in flood-prone areas in Florida, the conversation must shift to proactively preserving not just real estate, but entire communities and livelihoods.

Contributed by Grace Dickinson, Skyler Chin and the Center for Active Design Research Team.

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