Wildfires and Real Estate Values in California

Bengali, Leila; Nechio, Fernanda; Stewart, Stephanie

Journal Article

Wildfires and Real Estate Values in California

Abstract: Wildfires have been a concern in California for decades. The intensity of these events has increased recently, with particularly large and destructive fire seasons between 2018 and 2021. Analysis shows that distance from high fire-risk zones had little impact on residential housing values in the past. However, that has changed since the late 2010s, coinciding with more extensive fire damage to land and structures across the state. Insurance availability appears to help little in preserving home values in areas that are considered more at risk.

Keywords: wildfires; real estate; insurance; homes; home values;