A Strange Start to 2025: What is in Store for the Housing Market

by Lisa Lorentson

The fires that swept through Los Angeles in January were historic and it is shocking to see the horrific devastation they caused. The number of displaced people in our city are unfathomable. With over 10,000 homes destroyed, this travesty will impact the Los Angeles housing market for years.

At the end of 2024, Los Angeles passed a number of density and development initiatives, which will likely be streamlined to get construction moving. However, any new construction will face steeper building costs with potential labor shortages, an increase in material costs, and insurance issues. Builders are also likely to see additional post-fire building regulations and building codes.

Time will tell how home values will react, but supply and demand rules the industry, so with higher demand for homes, prices should continue to rise throughout Los Angeles County. Redfin studies show that after wildfires, homes in surrounding areas have increased at a rate of 48% over three years. However, that percentage is lower in higher fire risk areas than in lower fire risk areas, where most would prefer to relocate.

Presented by LISA LORENTSON

REALTOR | DRE# 01975382

323-360-2409

lisa.lorentson@gmail.com