Southern California Wildfires Force School Closures

- The 2018 Camp Fire was the state's deadliest and most destructive wildfire, destroying nearly 19,000 structures and killing 85 people after being sparked by a Pacific Gas & Electric Co. (PG&E) transmission line. - Wildfires have a notable impact on property values, with one study finding that home prices in a community just two miles from a burn zone fell by as much as 15%. A separate study noted that property values can decrease by nearly 23% after a second wildfire event in a region. - California's budget includes significant investments in wildfire prevention, with a recent allocation of $457 million for forest health and resilience projects. This is part of a larger, multi-billion dollar commitment to the state's Wildfire and Forest Resilience Action Plan. - Utility companies face major financial risks from wildfires. PG&E's market value dropped by $13 billion following the 2018 fires due to its potential liability. The state has since created a $21 billion insurance fund, co-funded by utilities and ratepayers, to address these risks. - The insurance industry faces substantial payouts after major fires. The January 2025 Palisades and Eaton fires in Los Angeles are estimated to be the costliest in global history, with economic losses of $65 billion, including $40 billion in insured damages. - Major wildfires can lead to significant job losses and impact local economies. The 2025 Los Angeles wildfires were projected to cause up to 49,110 job-years lost and a reduction in labor income of up to $3.7 billion. - In response to increasing wildfire risk, electric utilities have invested heavily in prevention, leading to average electricity rate hikes of over 50% for commercial and industrial customers since 2020. - The real estate market sees immediate effects, with the destruction of homes tightening housing supply. In the aftermath of the 2025 Los Angeles fires, the median home price in the city rose 12.5% year-over-year to $1,069,000.