California’s
battles
with
several
wildfires
over
the
past
few
weeks
has
resulted
in
the
destruction
of
more
than
57,000
acres
and
16,000
structures

as
of
Tuesday,
according
to

CAL
FIRE,
with
insured
losses
estimated
at
$45
billion.

Ruth
Jones
Nichols,
executive
vice
president
of
local
and
national
programs
at

Local
Initiatives
Support
Corp.
(LISC),
a
nonprofit
organization
that
provides
financial
assistance
and
technical
support
to
community
development
projects,
said
that
the
road
to
recovery
in

Los
Angeles
will
widen
the
wealth
gap.

Jones
Nichols
pointed
out
that

homeownership
rates
for
Latinos
and
Blacks
in
California
were
already
well
below
that
of
white
households.

“As
such,
for
those
with
financial
resources,
recovery
will
be
slow
mainly
due
to
building
times
as
permitting
processes
have
been
eased
with
blanket
waivers
to
expedite
reconstruction,“
she
said.

“…
For
those
without
adequate
income
or
savings,
largely
those
from
majority-minority
populations,
the
road
to
recovery
will
be
riddled
with
financial
barriers
that
will
prohibit
their
return,
leading
to
a
loss
of
original
ownership
representation
in
fire-ravaged
areas.”

Jones
Nichols
noted
that
in
areas
with
preexisting
affordability
crises,
like
Los
Angeles,
the
strain
is
felt
more
acutely
by
families
without
generational
wealth.

“Some
of
the
burnt-out
communities,
like
Altadena,
were
places
where
Black
families
could
thrive
at
a
time
when
Blacks
were
not
allowed
to
buy
property
west
of
Crenshaw
or
east
of
the
110
freeway.
…
Many
of
the
elderly
and
middle-income
families
displaced
by
the
wildfires
will
struggle
to
hold
on
to
their
properties,
essentially
ending
the
prospect
of
generational
wealth
transfers
within
those
communities,”
she
said. 

The

soaring
price
of
insurance,
the
costs
associated
with
reconstruction,
and
resiliency
upgrades
related
to
climate
change
costs
are
straining
households
beyond
California.
The
scale
of
destruction
often
delays
remediation,
ramps
up
costs,
and
creates
tension
in
housing
supply
and
demand.
Policies
designed
to
cover
living
expenses
during
a
disaster
might
not
cover
prolonged
displacement
either. 

“Rebuilding
will
help
the
supply-demand
ratio,
however,
that
doesn’t
necessarily
mean
that
prices
will
go
back
to
where
they
were
since
homes
will
be
brand
new,”
said
Adam
Hamilton,
the
CEO
of

REI
Hub,
a
software
company
for
rental
property
owners
and

real
estate
investors.
“It
will
likely
cause
prices
to
continue
to
rise,
potentially
even
pricing
out
current
residents.”

Hamilton
also
pointed
out
that
the
2028
Summer
Olympics
will
be
held
in
Los
Angeles,
which
he
said
is
likely
to
further
increase
the
pressure
to
rebuild
quickly.

Marty
Smuin,
CEO
of
proptech
firm

Arturo,
said
that
wildfire
risks,
particularly
in
fire-prone
areas,
should
be
of
concern
to
everyone.
But
there
are
practical
measures
to
mitigate
the
impacts,
and
his
company
is
using

artificial
intelligence
(AI)
to
enhance
disaster
prevention
and
response.

“Proactive
mitigation
measures
can
significantly
reduce
the
likelihood
of
damage
and
the
cost
of
reconstruction.
Steps
like
clearing
roofs
and
gutters
of
dry
debris,
maintaining
defensible
space
around
homes,
and
using
fire-resistant
materials
for
roofs
and
siding
can
make
properties
more
resilient,”
Smuin
said.
“AI
plays
a
pivotal
role
in
both
preventing
and
responding
to
these
disasters,
including
fire
damage,
offering
speed,
accuracy,
and
scalability
that
traditional
methods
often
lack.
At
Arturo,
we
assess
risks
and
recommend
ways
to
improve
resilience
using
advanced
AI-driven
property
intelligence.
In
the
aftermath
of
wildfires,
our
technology
supports
insurance
companies
and
homeowners
by
evaluating
damage,
calculating
reconstruction
costs,
and
enabling
faster,
more
accurate
claims
processing.”