Recovering from the Flames: How to Rebuild After LA’s Wildfires
Sean Roberts, CEO of Villa
Jan 27th 2025
The recent LA fires have left a profound mark on the community where many of our Villa teammates live, displacing families and devastating neighborhoods. We deeply appreciate the heroic efforts of firefighters, first responders, and volunteers who have worked tirelessly to contain the blaze, protect lives, and offer critical support.
Our mission to help people find homes they love has taken on even greater urgency in the wake of these losses. With so many homes destroyed in the neighborhoods we serve, rebuilding efficiently and cost-effectively is more important than ever. This article explores the challenges ahead and highlights how offsite construction can play a vital role in delivering high-quality homes to those in need.
If you or someone you know is navigating this difficult path of considering how to rebuild, please reach out to us—we’re here to help.
Resources for Affected Homeowners
Our hearts are with you during this incredibly difficult time. As a California-based company with family, colleagues, and clients throughout the Los Angeles area, we deeply understand the profound impact these fires have had on individuals, families, and communities. Our thoughts are with you as you navigate this challenging period, and we stand with you in the recovery process.
If you’ve been personally impacted by the fires, here’s a comprehensive list of resources that can help you access local distribution sites (for clothes, hygiene kits, and supplies) and temporary housing assistance, among other resources.
Ways You Can Help
At the moment, the top priority is containing the blazes and providing essential support to displaced individuals. Food, water, shelter, and basic supplies are critical needs for those affected. If you’d like to help, here are some vetted organizations making a difference:
- American Red Cross: This organization offers temporary shelter, essential supplies, and emotional support to fire victims. Donate here
- Los Angeles Fire Department Foundation: Supporting fire prevention and recovery programs, this foundation ensures fire crews and affected individuals receive the resources they need. Donate here
Additionally, you can make a direct impact by supporting families through platforms like GoFundMe, where many individuals and families have shared their needs and stories.
The Cost of the Damage
The recent wildfires in Los Angeles are shaping up to be among the costliest natural disasters in U.S. history. Since January 7th, 2025, these devastating blazes—driven by 100 mph Santa Ana winds and fueled by dried-out vegetation—have obliterated entire neighborhoods. Over 16,000 structures, including homes, schools, and businesses, have been reduced to ash. The human toll continues to grow, with rising fatalities and hundreds of thousands displaced from their homes.
While the LA fires may not claim the title of the largest in recent California history, they are on track to be the most expensive. Private forecaster AccuWeather estimates total damage and economic losses to exceed $250 billion—a figure that may climb as the fires continue to burn.
For context, the 2018 Camp Fire in Northern California’s Butte County destroyed over 18,000 structures, claimed 85 lives, and displaced 50,000 residents. At the time, the median home price in Butte County was $275,000. Within just a month, the cost of remaining homes surged by an average of $75,000, creating additional hurdles for survivors attempting to rebuild.
In Los Angeles, the stakes are significantly higher. Zillow values the average home in the Pacific Palisades ZIP code at $3.4 million and homes in Altadena average $1.3 million (12x and 5x higher than in Butte County, respectively). As seen in past disasters, homes left standing are likely to experience sharp price increases, further squeezing an already limited and highly competitive housing market.
For renters, the impact could be just as severe. LA’s rental market—already among the nation’s most expensive—is expected to face additional pressure as displaced families search for temporary housing, driving up demand and rental costs across the region.
How Insurance Plays Out
Between 2020 and 2022, many insurance companies declined to renew some 2.8 million homeowner policies in California. Last year, State Farm—California’s largest insurer—refused nearly 70% of policy renewals in a ZIP code central to Pacific Palisades. Across the broader LA area, the company dropped nearly 4,000 policies, leaving thousands of residents scrambling for alternative coverage.
For some homeowners, a lack of insurance may lead to difficult decisions, such as selling their land to cover short-term losses and fund temporary housing. Without insurance to shoulder the costs of rebuilding, these families face significant financial and emotional challenges.
Even for those who still have insurance, the road ahead is uncertain. Many policies come with high deductibles for fire damage, strict caps on rebuilding reimbursements, and exclusions for issues like soil contamination or landscaping losses. These gaps often translate to significant out-of-pocket costs, further compounding the hardship of starting over.
Looking ahead, insurance premiums are expected to rise, not just in LA but across California, and perhaps across other disaster-prone areas in the U.S., as insurers recalibrate for higher risks. These increased costs will inevitably trickle down to renters, adding yet another layer of financial strain in a region already grappling with skyrocketing housing costs.
Considerations for Rebuilding
In the aftermath of the recent Los Angeles fires, both state and local governments have enacted executive orders to help expedite the rebuilding process.
In Los Angeles, Mayor Bass has authorized several actions that will allow residents to rebuild. These include waiving requirements for new buildings to use electricity rather than gas for heating and appliances, and directing city departments to review reconstruction projects within 30 days.
At the state level, Governor Newsom has authorized actions that suspend CEQA reviews and California Coastal act reviews, directing state agencies to identify additional permitting requirements (including provisions of the Building Code) that can safely be suspended or streamlined to accelerate rebuilding. These changes will ideally make it more affordable to rebuild, protect against price gauging, and expedite rebuilding while enhancing wildfire resilience and safety.
Here are some additional things to consider:
Think About Your Property Differently
For properties with total fire damage, recent laws in California may create opportunities to rebuild differently. For example, SB 9 empowers property owners in single-family zoning to split their lot into two lots and permits the building of up to four units on the property. SB 684 enables property owners in multi-family zoning to split their property into up to 10 lots and permit building multiple additional housing units. SB 1123 enables property owners in single-family zoning to use the SB 684 process of creating up to 10 lots. These laws may provide opportunities to rebuild your property differently, potentially with more homes on the same property, and may provide some pathways for economic relief to impacted homeowners in ways they previously were not considering.
For homeowners who were uninsured or under-insured, the opportunity to split their property and/or build additional housing unit(s) may provide pathways for them to offset the costs of rebuilding through: (i) selling part of their property to a third-party in a lot split (possible through SB 9, SB 684, or SB 1123 – depending on the circumstances), (ii) building additional unit(s) to create a rental income stream (e.g. adding an ADU to the property), (iii) building additional unit(s) to sell to other buyers.
Build an ADU Before Rebuilding Your Primary Home
Another option to consider is starting with an ADU (Accessory Dwelling Unit) before rebuilding the primary residence. For many homeowners, this approach provides a practical pathway to return to their neighborhood sooner. ADUs often involve lower upfront costs, faster construction timelines, and less complexity compared to designing and rebuilding a primary home, making them an efficient and flexible solution during the rebuilding process.
It is worth noting that it is not typical for a certificate of occupancy to be issued to an ADU before the certificate of occupancy is issued for the primary dwelling. However, California Executive Order N-9-25 has suspended this requirement in the Los Angeles area for residential property that was substantially damaged or destroyed as a result of the fires, making it easier for homeowners to quickly construct ADUs.
Starting a rebuild with an ADU before rebuilding the primary home may be a smart option for many homeowners, especially those that want to take time to thoughtfully redesign and rebuild their primary residence (and potentially wait to do so until the local construction market has calmed down in the future). The added benefit of this approach is that once both residences have been built in the future, the homeowner will have the benefit of an ADU on their property for added space or rental income potential.
If going this route, you will still need to consider factors like zoning, size limitations, access, setbacks, and utility connections. Working with a knowledgeable company can help you to navigate those logistics.
House Others with an ADU
As California’s housing market continues to face pressure, ADUs are likely to be an important part of the solution. By adding or renting out an Accessory Dwelling Unit (ADU), you can provide much-needed temporary housing for displaced families.
- If you own property, consider adding an ADU for families in need of a place to stay.
- Renting out ADUs can help alleviate the housing shortage in the short term while providing affordable accommodations for those impacted by the fire.
Consider The Benefits of Modern Offsite Construction
For many homeowners looking to rebuild, utilizing offsite construction may be an interesting solution. By working with an offsite builder (such as Villa), there are ways to rebuild significantly more quickly (offsite construction is often ~2-4x faster than building onsite), at a lower cost, and with less risk and uncertainty along the way.
The construction market around Los Angeles is going to be disrupted and even “tighter” labor availability for the foreseeable future. This means that getting qualified trade labor will become harder and more expensive, and it also creates risks for build timelines when building using traditional methods onsite.
These factors need to be considered when planning to rebuild, and the benefits of modern offsite construction may be very compelling for certain homeowners looking to rebuild quickly, cost effectively, and with more certainty during the process.
The Challenges of Rebuilding on Fire-Impacted Land
Rebuilding after a wildfire is a long and complex process, with significant hurdles that homeowners and builders must navigate before construction can even begin. From contaminated soil to utility restoration, the challenges are daunting but necessary to address for a safe and sustainable recovery.
Some of the issues related to rebuilding on fire-impacted land can include:
- Contaminated Ground. Wildfires don’t just destroy homes—they may also fundamentally alter the land. The intense heat from fires can release toxic chemicals from household materials, vehicles, and other debris, contaminating the soil. Before rebuilding, affected sites require thorough soil testing to assess contamination levels. In many cases, remediation efforts, such as removing and replacing topsoil or neutralizing hazardous substances, are necessary. These processes are time-intensive and expensive but are critical for ensuring that new structures are built on safe, healthy ground.
- Utilities. The infrastructure required to restore essential utilities like water, electricity, and gas is often severely damaged in wildfire zones. Power lines and pipelines may need to be rebuilt from scratch, a process that can take months or even years, depending on the extent of the destruction. For many families, this means living without basic amenities for extended periods, further delaying their ability to return home. Coordination between utility companies, local governments, and rebuilding teams is crucial to streamline this process and prevent additional bottlenecks.
- Permitting and Timelines. Even after the land is deemed safe and utilities are restored, the process of obtaining building permits presents another challenge. Wildfire-affected areas often prioritize recovery efforts, but the sheer volume of applications can overwhelm local permitting offices, leading to significant delays. Additionally, some sites may require environmental assessments or special permits if they are in high-risk zones. For families eager to rebuild, the reality of these extended timelines can be both financially and emotionally draining.
- Long-Term Environmental Effects. Wildfires leave lasting environmental scars that extend well beyond the immediate aftermath. It can take decades for ecosystems to fully recover, with some areas never returning to their pre-fire state. In addition to soil and water contamination, the loss of vegetation increases the risk of landslides during subsequent rainstorms, a particular concern for LA’s hilly terrain. These findings underscore the need for long-term planning and investment in sustainable rebuilding practices.
Given these challenges, partnering with an experienced builder is crucial to successfully navigating the complexities of rebuilding on fire-impacted land.
Looking Ahead
As we look to the future, rebuilding Los Angeles after these catastrophic fires will be a long and challenging process. However, we can support affected individuals, families, and communities as they recover and rebuild stronger, more resilient homes. From financial assistance and temporary housing to investing in preparedness initiatives, every step we take can make a difference in helping our neighbors and ensuring a safer, more sustainable future for all. If Villa can help you or your family consider your options for rebuilding, please reach out to us today—we are standing by ready to help.
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