The recent spate of wildfires across California has left a trail of destruction, impacting the economy with tens of billions of dollars in property damage and lost wages. The Los Angeles Area Chamber of Commerce, working with the Los Angeles Economic Development Corporation (LAEDC), has released preliminary estimates highlighting the devastating financial toll.
According to the LAEDC, the wildfires have resulted in approximately $53.8 billion in property damage based on market value, and roughly $28 billion based on recorded value. The potential loss in tax revenue is estimated at nearly $466 million.
The human cost is also significant, with over 15,000 jobs affected, leading to an estimated $1.2 billion in lost wages. Nearly 2,000 businesses have been impacted, contributing to a total economic loss estimated at $2.9 billion.
These initial assessments are based on Los Angeles County fire maps and existing county records for both the Palisades and Eaton fire areas. Ongoing evaluations are underway as new fires continue to ignite across the region.
In response to the crisis, the State Assembly has passed a $2.5 billion emergency fire aid package with a unanimous bipartisan vote. This funding aims to address the immediate needs of affected communities and support recovery efforts.
Several new fires, including the Laguna and Sepulveda fires in Ventura and Los Angeles counties, and the Border 2 and Gilman fires in San Diego County, have erupted, adding to the widespread devastation. Containment efforts are ongoing, but many of these fires are still largely uncontained.
The Hughes Fire, which began in Los Angeles and Ventura counties, has already consumed over 10,000 acres and remains only 14% contained, highlighting the ongoing challenges faced by firefighters.
