Wildfires in Los Angeles worsen California's housing crisis and drive up rental demand

Recent wildfires in Los Angeles County destroyed over 17,000 structures, worsening California's housing crisis. The destruction has led to increased demand for rentals, while the already low inventory shrinks further, pushing prices higher. Before the fires, California faced significant housing shortages. Now, tens of thousands of displaced residents are seeking temporary housing in a market with a vacancy rate of only 5%. This situation may lead to price gouging. Insurance costs are expected to rise as companies face massive claims from the wildfires. Many insurers have already reduced coverage in high-risk areas, prompting concerns about affordability and availability for homeowners in California.