The median price of homes destroyed by wildfire was $3.7 million
Wildfires that ravaged Pacific Palisades, Malibu and Los Angeles areas for 3 weeks last January scorched an estimated $51.7 billion in residential real estate, marking one of the most financially devastating wildfire events in U.S. urban history, according to a new analysis by Redfin.
The analysis, based on data from the Los Angeles City Council and matched with Redfin’s proprietary valuation models, found that approximately 11,000 homes–mostly single-family residences–were affected by the blazes. The majority of the damage stemmed from the Palisades Fire, which state officials now rank as the third most destructive wildfire in California’s history.
The Los Angeles Department of Building and Safety conducted inspections on 11,125 residential parcels following the January fires. Redfin successfully matched nearly 11,000 of those properties with its estimated valuations from December 2024, just before the fires hit. While not all homes were completely destroyed, many suffered catastrophic loss.
Among the findings:
- The median pre-fire home value was $3.7 million
- Nearly 100 homes were worth over $20 million
- The average size of affected homes was 2,916 square fee
- Total damaged residential square footage topped 36.7 million
- The typical home was built in 1957
- Most properties had a First Street Foundation fire risk score of 5, classified as “major”
“These are not just structures–they’re entire communities, wiped out,” said Greg Eubanks, a local agent with Redfin Premier. “Many homeowners are in limbo, renting while they navigate insurance claims and consider whether to rebuild, relocate, or sell.”
The impact has been particularly acute in high-income enclaves like Pacific Palisades, where multimillion-dollar homes were reduced to ash. However, Eubanks noted that resale activity in those areas has slowed to a crawl due to high lot prices and the absence of functioning infrastructure. “In some neighborhoods, basic services like grocery stores are still offline,” he said. “That’s a tough environment for investors.”
Importantly, Redfin’s analysis excludes damage from the separate Eaton Fire, which tore through nearby Altadena, suggesting that the true value of residential losses across Los Angeles County is likely significantly higher than the $51.7 billion estimate.
Fire risk scores cited in the report are based on the First Street Foundation’s climate risk model, which blends historical wildfire activity with forward-looking climate projections. The risk ratings reflect ongoing environmental exposure rather than past fire events alone.
As the city faces a long road to recovery, Los Angeles is once again confronting the economic reality of climate-intensified disasters in some of the nation’s most expensive and fire-prone neighborhoods.
