How the Northern California Fires May Affect Local Housing Market

Written by Posted On Friday, 19 January 2018 07:54

By now, you have surely seen the news and the pictures that have gone viral on social media, or perhaps you’re located in an area where you experienced it yourself – the California wildfires that seem to blaze on with no end in sight. The fires began and spanned between the San Diego and Ventura counties, displacing 212,000 people from their homes and burning over 141,000 acres of land.


The reason why? California experienced a lengthy five years of drought and suddenly received a lot of rainfall last winter, which lead to an increase in vegetation. With high temperatures entering in both summer and fall and reaching new heights, the fires had just enough spark to bring devastation to an entire area.


The Impact of the Wildfires on Everyone


The awful truth is that many people have been left with the task of piecing their lives back together after they have lost everything. With the most destructive fire in California history displacing many people from their homes, many people throughout California, including those in Santa Rosa high-end homes and mobile parks, lost everything that meant the most to them. And the wildfires didn’t discriminate – they took out businesses along the way as well.


As locals know, the housing market was already under a type of crunch in the San Francisco Bay Area, made even worse by the devastation of the fires. Now, even more citizens deal with the impact as they realize they are left with even less than before. The fires killed approximately 42 people and destroyed an outstanding 8,400 structures.


But what does this mean for housing markets in the years to come? Because of the chaos left in California, the housing markets in even the most prosperous regions like San Francisco, are expected to struggle for years. The fires have led to slashed prices, less availability in all areas, and an infrastructure that will fight to meet the standards it once has. Thousands of homeowners will be looking, but will have to weigh serious options such as where they want to rebuild in the future, or leave the state for good and start new elsewhere.


In fact, the wreckage is so immense that it is projected to take over a decade to rebuild the homes, businesses, and services that made up so many of these areas. The tourist industry worth billions of dollars could struggle for years to come, as well as the jobs that have been created from within.

However, in areas where the fire did not wreak havoc, there could be property value increases, as these homes have been left unscathed and businesses untouched, leading to growth and opportunities in other sections of California. Many Californians will be facing the unfortunate reality that wildfires bring: where to start over again. Will they rent, buy in similar areas, or leave altogether? This is the question that will determine the future of the market in many areas.

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James Stevenson

Hi, My name is James and I've been involved in the property and real estate industry for 10 years now. I hope people will like to read about my thoughts and experiences in the industry and please contact me if you want to discuss my articles further!

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