Investment Manager's Analysis: Southern California Wildfires Threaten Homes and Ski Resort
By Andrew Hay
Southern California wildfires have devastated mountain homes, ravaged a ski resort, and forced thousands to evacuate from suburbs east of Los Angeles. The Bridge Fire in San Bernardino County has grown to over 47,000 acres, making it the largest of four blazes in the area. Additionally, the Airport fire in Orange and Riverside counties has reached 22,000 acres, causing destruction in El Cariso Village.
Governor Gavin Newsom has declared a state of emergency and secured federal funds to combat the Airport Fire. Climate scientists attribute the severe heatwave fueling the fires to global warming, resulting in over a dozen injuries. Schools in 10 districts have closed due to smoky air from another blaze in San Bernardino County, the Line Fire, which was allegedly started by a 34-year-old man.
The increase in wildfires is a natural phenomenon in the mountainous regions east of Los Angeles, but the influx of residents seeking affordable housing has hindered firefighters' ability to contain the blazes. Many new homeowners are struggling to obtain fire insurance, further complicating the situation.
The area of land burned in California this year has already surpassed that of 2023, despite having more moisture then. The United States is experiencing a particularly active wildfire season, with 6.9 million acres burned to date, compared to the annual average of around 7 million acres over the last decade.
In conclusion, the ongoing wildfires in Southern California pose a significant threat to homes, communities, and natural landscapes. As an investor, it is crucial to monitor the situation closely and consider the potential impact on property values, insurance premiums, and overall market stability. Stay informed and take necessary precautions to protect your investments and financial well-being.