Los Angeles Wildfires Caused as Much as $164 billion in Total Property and Capital Losses
A new report from UCLA Anderson Forecast predicts a 0.48% loss in county-level GDP for 2025, amounting to approximately $4.6 billion
LOS ANGELES, Feb. 4, 2025 /PRNewswire/ -- A new report from UCLA Anderson Forecast suggests the two largest wildfires that ravaged L.A. County may have caused total property and capital losses ranging between $95 and $164 billion, with insured losses estimated at $75 billion. The report, authored by economists Zhiyun Li and William Yu, predicts a 0.48% loss in county-level GDP for 2025, amounting to approximately $4.6 billion.
The economists summarized the estimated economic impacts, acknowledging that their estimates are based on various assumptions and may be subject to future revision.
Highlights of the report findings:
- Total property and capital losses could range between $95 billion and $164 billion, with insured losses estimated at $75 billion.
- County-level GDP for 2025 could decline 0.48%, amounting to approximately $4.6 billion.
- Local businesses and employees in the affected areas could face a total wage loss of $297 million.
- 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 rental units, will become increasingly unaffordable.
- All wildfire mitigation investments will be justified, considering the astronomical costs associated with wildfires.
About UCLA Anderson Forecast
UCLA Anderson Forecast is one of the most widely watched and often-cited economic outlooks for California and the nation and was unique in predicting both the seriousness of the early-1990s downturn in California and the strength of the state's rebound since 1993. The Forecast was credited as the first major U.S. economic forecasting group to call the recession of 2001 and, in March 2020, it was the first to declare that the recession caused by the COVID-19 pandemic had already begun.
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About UCLA Anderson School of Management
UCLA Anderson School of Management is a world-renowned learning and research institution. As part of the nation's No. 1 public university, its mission is to advance management thinking and prepare transformative leaders to make positive business and societal impact. Located in Los Angeles, one of the nation's most diverse and dynamic cities and the creative capital of the world, UCLA Anderson places more MBAs on the West Coast than any other business school, and its graduates also bring an innovative and inclusive West Coast sensibility to leading organizations across the U.S. and the world. Each year, UCLA Anderson's MBA, Fully Employed MBA, Executive MBA, UCLA-NUS Executive MBA, Master of Financial Engineering, Master of Science in Business Analytics and doctoral programs educate more than 2,000 students, while the Executive Education program trains an additional 1,800 professionals. This next generation of transformative leaders will help shape the future of both business and society.
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SOURCE UCLA Anderson Forecast