The recent wildfires in Los Angeles have caused widespread damage, displacing families and putting even more pressure on an already tight housing market. If you’re thinking about buying, selling, or investing in LA County real estate, it’s important to understand how these changes could impact your next move. Let’s break it down in a way that makes sense so you can navigate this shifting market with confidence.
For Buyers: Navigating a Competitive Landscape
With so many people displaced, demand for rentals has skyrocketed. Some landlords have even tried to take advantage of the situation by illegally raising rents—some as much as 124%—despite California’s anti-price gouging laws that cap increases at 10% during emergencies. This means that for many renters, buying a home is starting to look like a better long-term option.
At the same time, homes in high-risk wildfire zones are getting harder to insure. The California FAIR Plan, which provides last-resort fire insurance, is struggling to keep up with demand, and homeowners in fire-prone areas are seeing insurance costs rise dramatically. If you’re considering buying, it’s crucial to factor in not just the mortgage, but also the cost and availability of insurance.
My take? If you’re looking in LA County, it might make sense to prioritize homes in lower-risk areas. Not only will you have an easier time getting insured, but demand for these properties is on the rise, which means they could appreciate in value faster. A good real estate agent (hi, that’s me!) can help you find options that fit your budget while keeping long-term costs in mind.
For Sellers: Seizing Market Opportunities
If you own a home in a wildfire-safe area, now could be the perfect time to sell. Buyers are actively looking for homes that don’t come with sky-high insurance premiums, and properties in these areas are seeing strong demand.
On the flip side, if your home is in a high-risk wildfire zone, selling may require a little more strategy. Buyers are more cautious, and some lenders are making it harder to get financing for homes in these areas. However, homes with fire-resistant upgrades, defensible space, and access to emergency services are still in demand—it’s just about positioning them the right way.
My take? If you’re thinking about selling, don’t wait until insurance costs rise even further. Homes in safer zones are moving quickly, and even in higher-risk areas, a well-marketed property can still attract buyers. Pricing it right and showcasing its strengths will be key.
For Investors: What This Means for Multifamily and Rental Properties
The rental market in LA was already competitive, but after the wildfires, demand has exploded. Displaced families need temporary housing, and renters who were already struggling with LA’s high prices are now being forced to find new options. This means multifamily properties are seeing increased demand—especially in areas outside high-risk zones.
However, landlords and investors need to be cautious. Insurance rates on rental properties are climbing, and in some fire-prone areas, it’s becoming harder to get coverage at all. Plus, with new regulations cracking down on price gouging, investors need to ensure they’re staying compliant while still making smart financial moves.
My take? If you’ve been thinking about investing in LA real estate, now is a moment to watch closely. Multifamily properties in lower-risk areas could be a strong investment with high rental demand. But due diligence is more important than ever—understanding local laws, insurance policies, and long-term market trends will be key to making a profitable decision.
Let’s Talk About Your Next Move
The LA real estate market is shifting fast, and having the right strategy matters now more than ever. Whether you’re looking to buy, sell, or invest in single-family or multifamily properties, I can help you navigate these changes and find the best opportunities. Let’s chat about what’s possible for you in today’s market—reach out anytime!
