Real estate losses from fires top $30 billion, from old mobile homes to $23-million mansions
The analysis, comparing Cal Fire’s assessments of buildings destroyed and damaged with Los Angeles County Assessor parcel records, gives new perspective to the extent of the toll on the two communities. The fires destroyed structures on 56% of all the properties making up the Pacific Palisades. Nearly half of properties in Altadena were destroyed.
More than 300 were commercial buildings. Churches, schools, and hospitals were also lost. By far, the biggest impact was on homes.
In all, just under 13,000 households were displaced by the two fires. They came from nearly 9,700 single-family homes and condominiums, almost 700 apartment units, more than 2,000 units of duplexes and bungalow courts, and 373 mobile homes that Cal Fire determined were either destroyed or heavily damaged.
About half the single-family properties destroyed in the fires did not have a homeowner’s exemption, suggesting they were rentals, and their loss could raise questions about the sustainability of the two communities’ base of affordable housing.
Los Angeles Housing Department records show that 770 rent-controlled units were destroyed in Pacific Palisades and will be lost as affordable housing if their replacements no longer fall under the city’s rent stabilization ordinance. A spokeswoman for the department said it is working with the city attorney to determine whether the city’s rent stabilization ordinance can require the units to be rebuilt under the law, which applies to properties built before October 1, 1978.
In Altadena, hundreds of renters occupied a type of housing common in the first half of the 20th century and almost never built today — clusters of single-family bungalows or cottages on a single parcel. Even though those parcels are no longer allowed under current zoning, a county ordinance adopted following the 2018 Woolsey fire allows the owners to rebuild like-for-like. But some may lack the financial resources to do so.
The losses extended over a range of L.A.’s economic spectrum, weighted toward the high end. Among the lost dwellings were 79 single-family homes valued at over $10 million in the Palisades fire zone, where the median value was $3.7 million, according to The Times calculation. The median in Altadena, though considerably lower at $1.2 million, was still higher than all of Los Angeles County by more than a quarter of a million dollars. More than 2,400 homes in Altadena were valued at over $1.5 million.
Those values, calculated based on the most recent sales in the two neighborhoods, were not always indicative of residents’ economic status. Many that were worth more than a million dollars just before they burned were purchased decades ago for less than $500,000.
The Times estimate of losses, $22 billion in Palisades and $7.8 billion in Altadena, for homes rated by Cal Fire as destroyed or up to 50% damaged, represents only a fraction of the total cost of the region’s worst wildfire disaster, estimated at as much as $272 million.
The Times sought to gauge the collective loss to property owners — the value in single-family homes, condominiums, apartments, and commercial buildings that were built up over years or decades and wiped away in a day. The estimate is based on total market value, including land and improvements. Most property owners will eventually recoup some or all of their losses through insurance or by selling off the land.
Conclusion
The fires have left a lasting impact on the communities of Pacific Palisades and Altadena, with estimated losses topping $30 billion and government agencies set to lose $61 million annually in taxes. The destruction has also raised concerns about the sustainability of affordable housing in the area and the potential for displacement of low- and moderate-income residents.
FAQs
Q: How much were the losses estimated to be?
A: The estimated losses were $22 billion in Palisades and $7.8 billion in Altadena, for a total of $30.8 billion.
Q: How many households were displaced by the fires?
A: Just under 13,000 households were displaced by the two fires.
Q: What was the median value of homes destroyed in Palisades and Altadena?
A: The median value of homes destroyed in Palisades was $3.7 million, while in Altadena it was $1.2 million.
Q: How many single-family homes were destroyed in the fires?
A: Nearly 9,700 single-family homes were destroyed in the fires.
Q: How many commercial buildings were destroyed in the fires?
A: More than 300 commercial buildings were destroyed in the fires.
Q: How will government agencies be affected by the lost taxes?
A: Government agencies, including 18 school and community college districts, will lose $61 million annually in taxes, with the county of Los Angeles set to lose the largest share, about $13 million per year.
