Los Angeles Wildfires Cause Up to $164 Billion in Economic Losses, Study Finds

The January blazes destroyed over 16,000 structures, claimed 29 lives, and highlight escalating costs tied to climate-driven disasters.

The Eaton and Palisades fires burned over 37,000 acres and caused economic losses estimated between $95 billion and $164 billion, making them potentially the second-costliest natural disaster in U.S. history.
The fires destroyed more than 16,000 structures, including 11,000 single-family homes, and killed at least 29 people, while forcing nearly 200,000 residents to evacuate.
Insured losses are estimated at $75 billion, but many homeowners were underinsured or lacked coverage, exacerbating financial hardships for affected families.
The UCLA study highlights how wildfires worsen housing shortages in Los Angeles, with two-thirds to three-quarters of annual housing supply lost to fires in recent years.
Researchers warn of long-term economic and public health impacts, including rising insurance premiums, unaffordable housing, and health risks from wildfire-related air pollution.