Destruction of thousands of homes and businesses leads to massive tax losses and uncertain recovery for affected communities
The Palisades and Eaton fires have caused real estate losses exceeding $30 billion, with government agencies facing an annual tax revenue loss of $61 million during rebuilding, according to a Los Angeles Times analysis.
A review of California Department of Forestry and Fire Protection damage assessments and Los Angeles County assessor records shows 56% of Pacific Palisades properties were affected, with nearly half of Altadena properties destroyed. More than 300 commercial buildings, including churches, schools, and hospitals, were lost, with the housing sector suffering the most.
Approximately 13,000 households were displaced, including 9,700 single-family homes and condos, nearly 700 apartment units, over 2,000 duplexes and bungalow courts, and 373 mobile homes. Nearly half of the single-family homes lacked a homeowners’ exemption, suggesting they were rental properties, raising concerns about affordable housing.
In Pacific Palisades, 770 rent-controlled units were destroyed, with uncertainty over their replacement under the city’s rent stabilization ordinance. Altadena lost early 20th-century bungalow-style housing, which current zoning laws prohibit. While a 2018 county ordinance allows rebuilding on a like-for-like basis, financial barriers may prevent some homeowners from restoring properties.
Losses spanned economic tiers, with 79 Palisades homes valued over $10 million among those lost. The median home value in the Palisades was $3.7 million, while Altadena’s was $1.2 million, higher than the county average.
Experts estimate the region’s total economic impact at $272 billion, including property damage, infrastructure repair, and lost economic activity. Rebuilding will depend on insurance payouts, zoning regulations, and financial constraints. Many homeowners may be unable to rebuild due to cost and time constraints, forcing difficult decisions about their future.
