UCLA: Economic Impact of the Los Angeles Wildfires

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Economic Impact of the Los Angeles Wildfires

Zhiyun Li, UCLA Anderson Forecast

William Yu, Economist, UCLA Anderson Forecast

Los Angeles (February 4, 2025)

We summarize the estimated economic impacts of L.A. wildfires in January 2025 as follows, acknowledging that these estimates are based on various assumptions and may be subject to future revision.

• Total property and capital losses could range between $95 billion and $164 billion, with insured losses estimated at $75 billion.
• A 0.48% decline in county-level GDP for 2025, amounting to approximately $4.6 billion.
• A total wage loss of $297 million for local businesses and employees in the affected areas.
• Without substantial and effective wildfire mitigation efforts and investments, Californians will face increasingly higher insurance premiums and growing health risks from wildfire-related pollution.
• L.A. housing markets, in particular for rental units, will become increasingly unaffordable.
• All wildfire mitigation investments will be justified, considering the astronomical costs associated with wildfires.

全文：https://www.anderson.ucla.edu/about/centers/ucla-anderson-forecast/economic-impact-los-angeles-wildfires?