'People are still struggling': Families face economic, health challenges 1 year after Los Angeles County fires

Rebuilding is slowly underway following the deadly Los Angeles County wildfires in January 2025, but many families still face delays with permits and insurance as health and economic impacts come into focus.

A year has passed since catastrophic wildfires raced through Los Angeles County, including the Eaton Fire and the Palisades Fire, which both erupted on Jan. 7. AccuWeather experts say the economic and health challenges from the disaster are likely to linger for years to come.

“Many people are still struggling with the first steps of recovery one year after the devastating fires. The process to secure permits, clear debris and obtain insurance claim payouts has been incredibly challenging for some families and businesses,” AccuWeather Chief Meteorologist Jonathan Porter said. “Families were displaced by the fires, and many are still facing an uncertain future. Some people have left the region, and others have decided to move out of California.”

On Tuesday, California Gov. Gavin Newsom announced new investments to help wildfire survivors rebuild their homes and stay in their communities.

"We are rebuilding stronger, fairer communities in Los Angeles without displacing the people who call these neighborhoods home," Newsom said. "More affordable homes across the county means survivors can stay near their schools, jobs, and support systems, and all Angelenos are better able to afford housing in these vibrant communities."

Photos taken this week show some new homes are under construction in the areas decimated by the fires, but they are isolated sights amid vast stretches of empty lots.

AccuWeather experts estimate the total damage and economic loss from the Los Angeles County wildfires at $250 billion to $275 billion, making it one of the costliest wildfire disasters in modern U.S. history.

The economic fallout is only part of the story. People who survived the fires, fought to extinguish the blazes and helped clean up after the disaster could face impacts for years to come.

“More people may develop health issues linked to exposure to toxic wildfire smoke and debris, along with the stress of evacuations or losing their homes to the fires,” Porter added. “Long-term physical and mental healthcare costs are a key factor that AccuWeather experts consider the long tail of negative medical impacts in our total damage and economic loss estimates for extreme weather disasters.”

Southern California’s wildfire risk in 2026

The weather in Southern California this winter has been drastically different from what it was last year, leading up to the historic wildfires. Last winter started off extremely dry across the region and, paired with severe drought, set the stage for wildfires to erupt. During the final weeks of 2025 and the start of 2026, California has been drenched by multiple storms packing heavy rain and feet of mountain snow.

The widespread rainfall this season is beneficial in easing drought concerns and helping to fill water reservoirs, but it can also lead to increased wildfire concerns down the road.

“As that moisture soaks into the ground and the snowpack melts, it can fuel rapid grass and vegetation growth this spring. If hot and dry weather develops during the summer, that vegetation can dry out quickly and become an abundant source of fuel for wildfires," AccuWeather Lead Long-Range Expert Paul Pastelok explained.

The risk of rapidly spreading fires in Southern California is expected to remain low through mid-January.

“There is no longer a wildfire season in California. Fires can ignite and spread at any time of year when weather conditions and vegetation align," Pastelok said.

AccuWeather will release its U.S. wildfire forecast in February.

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