Nearly half of the survivors of the January 2025 Los Angeles County wildfires have either run out of temporary housing insurance or will soon run out before they are able to rebuild or move home.
Currently, about two in three fire survivors are still displaced. The Los Angeles Times reports homeowners are expecting financial shortfalls averaging more than $600,000 between their insurance payouts and the costs for rebuilding.
The data comes from a new report published by the fire recovery nonprofit Department of Angel, which noted “large and widening gaps between the recovery paths of different survivors.” The gaps are more precarious for lower-income residents: for wildfire survivors earning $50,000 or less, nearly 80% said they didn’t think they could afford housing for three months once coverage ended.
“Long-term finances are the most urgent issue for survivors, even as they face a diverse array of other pressing challenges,” the report stated, noting one in five reported significant financial hardships after the fires while nearly half of all survivors have depleted a significant portion of their savings. One in 10 said they cut back on food or were falling behind on rent, mortgage or utility payments, and four in 10 have taken on new debt to stay financially afloat.
“Some of the most dire financial impacts are disproportionately being experienced by people of color: 22% of Latinos and 18% of African Americans have cut back on food, compared to 7% of white survivors,” the report added. “Latinos and African Americans are also more likely to have fallen behind on rent/or mortgage, fallen behind on utility bills, missed work or school, relied on food assistance, and experienced homelessness.”
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