The LA fires: A look back and forward
On Tuesday, I listened as my wife outlined a history of California, focusing on the evolution of water rights and the historical efforts to create an abundance of access to municipalities and agriculture. For 25 minutes, she wove a narrative that was both informative and captivating. With each question I asked, her story became richer in detail, delving into the complex interplay between urban and agricultural political power and how the state's infrastructure and industries evolved to manage water.
It struck me—when buying a home, wouldn't it be valuable to understand more about its city and the decisions that have shaped its growth? The conversation reignited an idea I'd been mulling over this past year—to delve into the history of the East Bay and share my findings with clients. By bringing historical context to a home on a certain street, in a neighborhood and city, I can enrich our dialog much like I do when discussing the condition of a property - how it communicates a story about its history, its neglect, and its potential.
So in 2025, I look forward to studying the history of the East Bay and discovering what might a client need or want to know. But Los Angeles is also inspiring me to look ahead too - what can we expect, consider or do for the future related to the threat of wildfire.
While the immediate impact of the fires is concentrated down south, there are potential ripple effects that could influence the real estate market in the East Bay. I’d like to name a few that come to mind…
Insurance Market Implications
The extensive property damage in LA will put further strain on California's insurance market. Insurers may reassess their coverage policies, leading to increased premiums or reduced availability of home insurance statewide. This shift could affect both buyers and sellers, as fluctuating insurance costs may influence purchasing decisions related to a property's location, age, or construction.
Market Sentiment and Perception
The visibility of the LA fires will likely heighten awareness of wildfire risks, potentially influencing buyer preferences. Not only will we see increased demand for properties with fire-resistant or fire-hardening features, buyers now realize homes in the hills and the flats are at risk.
Potential Influx of Buyers
There are countless familial and cultural ties between LA and the Bay Area. Displaced homeowners from LA may consider relocating to the East Bay, potentially driving up demand for housing, raising property prices, and intensifying competition among buyers.
Construction and Material Shortages
As seen after the Santa Rosa fires, the LA fires may lead to economic ripple effects, including shortages of contractors and building materials like lumber, drywall, and roofing, which could drive up costs and delay construction projects.
Increased Focus on Wildfire Mitigation and Prevention
There might be a shift in landscaping preferences, with buyers favoring fire-resistant plants and materials. This trend could influence the aesthetics and environmental strategies of how a neighborhood and local government come together to reduce risk.
Homeowner Improvements
Property owners will reduce fire liability by installing fire-resistant roofing and siding materials, such as metal, tile, or fiber-cement, upgrading windows to dual-pane tempered glass and sealing vents with fine mesh screens can minimize the chances of embers entering the home.
While the LA wildfires primarily impact Southern California, their effects may extend to the Bay Area real estate market through increased buyer interest, shifts in the insurance landscape, and more. Both buyers and sellers should stay informed about these developments and weigh them in the mix when considering to transact in 2025.
- Alex
