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The wildfires that burned through much of Los Angeles County earlier this month wreaked havoc across the region, burning down entire neighborhoods and destroying more than 17,000 structures, many of which were homes. The result of all this devastation, experts told Newsweek, will likely be a worsening of the Golden State's ongoing housing shortage.
This in turn will send prices even higher in what is already one of the most expensive markets in the country. Lawrence Yun, chief economist at the National Association of Realtors® (NAR), told Newsweek that housing shortages normally follow natural disasters due to the destruction and major damage caused by extreme weather events.
"This leads to heightened demand for short-term living arrangements, which drives up local rents," Yun said. While the entire nation has massively underbuilt since the crisis of 2007-2008 compared to the needs of its population, the problem is particularly felt in California, where complex building regulations often delay or prevent new constructions.
"California consistently underproduces new homes in relation to its population size," Yun said. "Excessive development regulations have resulted in homebuilders preferring other states. This has contributed to high home prices and low homeownership rates in California," he added. "The recent destruction of homes will exacerbate the housing shortage."