AccuWeather estimates more than $250 billion in damages and economic loss from LA wildfires
To put the magnitude of loss into context, this latest damage and economic loss estimate surpasses the numbers for the entire 2020 wildfire season.
AccuWeather’s Bill Wadell reported live from Southern California on Jan. 13, showcasing the catastrophic and heartbreaking situation.
As fires continue to rage across Southern California and the scope of catastrophic damage, loss of life, business disruptions and other economic impacts becomes clearer, AccuWeather has updated and increased its preliminary estimate of the total damage and economic loss to between $250 billion and $275 billion.
“These fast-moving, wind-driven infernos have created one of the costliest wildfire disasters in modern U.S. history,” AccuWeather Chief Meteorologist Jonathan Porter said. “Hurricane-force winds sent flames ripping through neighborhoods filled with multi-million-dollar homes. The devastation left behind is heartbreaking, and the economic toll is staggering."
The worst of the fires are burning in an area from Santa Monica to Malibu, impacting some of the most expensive real estate in the country, with median home values over $2 million. Should a large number of additional structures be burned in the coming days, it may become the worst wildfire in modern California history based on the number of structures burned and economic loss,” Porter added.
To put the magnitude of loss into context, this latest damage and economic estimate for the fires burning in Southern California surpasses the damage and economic loss numbers for the entire 2020 wildfire season, which was a very active U.S. wildfire season, Porter noted. The damage and economic loss in Los Angeles is far higher than the deadly Maui wildfires in 2023, which were $13 billion to $16 billion and have also surpassed the $225 to $250 billion estimate for damages and economic loss after 2024's Hurricane Helene.
“Tragically, lives have been changed forever in just a matter of minutes. Many families may not be able to afford to rebuild or repair and return. Businesses may not be able to recover, and jobs will be permanently lost. Thousands of people are in desperate need of help, initially the basic and life-sustaining needs of food, water and shelter, as this tragedy unfolds," Porter said. "Many families will face significant unexpected costs to relocate to another area in Southern California. The recovery process will be extremely expensive and emotionally challenging in the months and years to come.”
AccuWeather’s Ali Reid reported live from Southern California on Jan. 13, sharing the stories of wildfire survivors who are trying to process the magnitude of what’s happened.
This update accounts for new and additional information, including the damage and destruction of thousands of homes and businesses, damage to utilities and infrastructure, the financial impact of evacuation orders, the long-term cost of rebuilding or relocation for people in densely populated areas whose homes were destroyed, anticipated cleanup and recovery costs, emergency shelter expenses, as well as immediate and long-term health care costs for people who were injured or exposed to unhealthy air quality from wildfire smoke.
AccuWeather’s estimate also accounts for lost wages and housing displacement for thousands of people across Southern California whose jobs have been temporarily impacted, which may ultimately result in large numbers of furloughs, layoffs or businesses shutting down and jobs being eliminated.
Report a Typo
