US: Catastrophic Wildfires Threaten Billions of Dollars in Southern California Property Damage

New data from CoreLogic reveals that the Palisades Fire started on January 7, 2025, around 10:30 a.m. PST in Pacific Palisades, California. Fuelled by strong winds exceeding 40 mph, the fire rapidly spread across approximately 200 acres and continued to grow at a dangerous pace.

By the morning of January 8, the fire had consumed 2,921 acres, with no progress made in containment efforts. Authorities issued evacuation orders for about 30,000 residents as multiple homes were destroyed by the flames.

On Wednesday morning, evacuation zones were expanded to include parts of Malibu, complicating recovery efforts in a region still reeling from the Franklin Fire in December.

Strong winds and dry conditions have worsened the situation, with gusts reaching up to 90 mph in some areas (Figure 1), the most extreme conditions since the 2011 windstorm in Los Angeles County.

In addition to the Palisades Fire, other major wildfires are also spreading across the region. The Eaton Fire in Altadena has burned 2,227 acres, while the Hurst Fire in Sylmar has scorched 505 acres. Both fires have prompted evacuations in nearby neighbourhoods.

None of the three active wildfires are contained at this time. While the exact number of homes destroyed is not yet clear, many structures have been lost. Winds of 30-50 mph are expected to persist, grounding firefighting aircraft and hindering efforts to control the flames. Continued strong winds and low humidity are expected, further fuelling the fires' rapid spread.

CoreLogic estimates that over 456,000 homes, valued at nearly $300 billion in reconstruction costs, are at moderate or greater wildfire risk in the Los Angeles and Riverside metropolitan areas.

These figures represent general wildfire risk in the region and are not specific to the current fires. More detailed data will be available once fire perimeters are clearly defined.

Urban expansion has increased the wildland-urban interface (WUI), heightening fire risks where human development meets wildland areas. To mitigate this risk, experts recommend:

• Using fire-resistant building materials.
• Creating defensible space around properties.
• Implementing proactive land management to reduce vegetation and fuel loads.
• Investing in emergency planning, community education, and early fire detection systems.