Reimagining Disaster Housing Response:

We begin this study in the raw aftermath of devastating loss, as thousands of Los Angeles families face the destruction of their homes - not just buildings, but the centers of their lives and communities. The immediate crisis is deeply personal: where do people live now, how do they rebuild, can they return? Yet as communities like Altadena seek to recover, they face a daunting sequence of challenges. The first barrier is reconstruction itself - the physical and financial challenge of rebuilding.

By documenting the many interlocking challenges in real time and using artificial intelligence tools from Google and Anthropic, we hope to learn alongside communities as they search for new paths forward, working to reimagine not just how we rebuild homes, but how we protect and sustain them in an increasingly uncertain future.​​​​​​​​​​​​​​​​

The 2025 Los Angeles Fires

The Disaster Unfolds

In January 2025, Southern California experienced one of its most devastating wildfire events in history. Two major fires—the Palisades Fire and the Eaton Fire—ravaged Los Angeles County, collectively destroying over 15,900 structures, damaging nearly 2,000 more, and claiming 28 lives. The catastrophe forced the evacuation of approximately 180,000 residents.

The Palisades Fire alone destroyed 6,837 structures across 23,707 acres, making it California's third-most destructive wildfire on record. The Eaton Fire devastated substantial portions of Altadena and surrounding foothill communities.

Scale of Destruction

The fires left behind unprecedented devastation:

  • Nearly 9,700 single-family homes and condominiums destroyed

  • Approximately 700 apartment units lost

  • Over 2,000 duplex and bungalow court units razed

  • 373 mobile homes destroyed

  • More than 300 commercial buildings damaged or destroyed

  • Churches, schools, and hospitals affected

  • Critical infrastructure compromised, including water systems that proved inadequate for fires of this magnitude

The financial impact has been staggering:

  • Estimated $30 billion in real estate damage

  • Total economic impact potentially reaching $272 billion (AccuWeather estimate)

  • 56% of Pacific Palisades properties destroyed

  • Nearly half of Altadena properties destroyed

  • Almost 13,000 households displaced

  • $61 million or more in annual tax revenue losses for local governments

Emergency Response

The immediate response to the fires involved multiple agencies working to contain the blazes and begin recovery efforts:

  • FEMA and the U.S. Army Corps of Engineers led debris removal operations

  • EPA conducted hazardous materials assessment and removal

  • California Conservation Corps assisted with cleanup efforts

  • LADWP worked to restore critical infrastructure

On March 1, 2025, Governor Gavin Newsom declared a state of emergency, suspending both the California Environmental Quality Act (CEQA) and the California Coastal Act to accelerate wildfire prevention measures and streamline rebuilding efforts. His executive orders included:

  • Expedited implementation of vegetation removal, fuel break creation, and prescribed burns

  • Streamlined rebuilding by suspending Coastal Act permitting requirements and CEQA reviews

  • Requirement for local approvals within 30 days

  • Establishment of dedicated permitting centers in affected areas

  • Formation of a "development services strike force" to address reconstruction obstacles

  • Suspension of regulations that might discourage hotels from providing extended shelter

The Cleanup Challenge

The cleanup process following the fires involves strict protocols:

Phase One: Initial Assessment and Safety

Property owners cannot begin cleanup independently. The Los Angeles County Fire - Health Hazmat Division must first inspect sites to identify hazardous materials including asbestos, heavy metals, household chemicals, and damaged electric vehicle batteries.

Phase Two: Hazardous Material Removal

Only specialized crews authorized by the County can remove hazardous materials, including:

  • Asbestos-containing materials

  • Heavy metals from household items and electronics

  • Chemical products and batteries

  • Contaminated soil

Property owners must sign access agreements allowing these teams onto their property.

Phase Three: General Debris Removal

After hazardous materials are cleared, general debris removal begins, requiring:

  • County Fire Department inspection

  • Proper sorting of materials

  • Transport to approved facilities

  • Final clearance testing

The entire cleanup operation is expected to take approximately one year, though timelines have been compressed under political pressure. The first phase, handled by the EPA and focusing on hazardous materials removal, was initially planned for three months but has been compressed to one month.

A controversial decision by FEMA and the Army Corps of Engineers to skip soil testing after cleanup represents a departure from California's established practice since 2007 of mandatory soil testing after major wildfires. This has raised concerns among environmental experts and California officials who argue that soil testing is crucial for ensuring resident safety.

Insurance Crisis

The fires have exposed and deepened a critical vulnerability in California's housing market: the collapse of traditional insurance coverage. Major insurers are retreating from high-risk areas:

  • State Farm, facing $7.6 billion in claims from these fires, has declared that "writing new policies doesn't make any sense at this time" after suffering cumulative underwriting losses exceeding $5 billion over nine years

  • Premium rates are doubling or tripling

  • The state's backup plan (FAIR Plan) exposure has tripled to $458 billion

This crisis stems from:

  • Outdated regulations preventing realistic risk pricing

  • Escalating climate disasters

  • Political resistance to rate increases

  • Insurers paying out more than they collect

For homeowners, this means limited coverage options, skyrocketing premiums, forced reliance on expensive state backup coverage, potential property value decline, and rebuilding challenges. Pacific Palisades has already seen a 16% drop in median home prices after State Farm canceled most policies in the area last year.

Rebuilding Efforts

A massive recovery operation is underway, with several initiatives to address the immense need:

Government Action

  • Executive Order N-9-25 streamlines regulations around Accessory Dwelling Units (ADUs) in fire-affected areas

  • Extensions of price gouging protections and eviction moratoriums

  • Suspended mobile home park fees

  • Financial assistance programs

Private Sector Response

  • City officials and developers have formed a "Builders Alliance" to streamline reconstruction with pre-approved designs and bulk purchasing strategies

  • Rick Caruso, a former LA mayoral candidate, has partnered with prefab homebuilder Samara to launch Steadfast LA, providing free prefabricated homes to low-income wildfire victims

  • Significant financial backing, including a $15 million pledge from Airbnb co-founder Joe Gebbia ($5 million upfront plus $10 million in matching donations)

Rebuilding Challenges

Despite these efforts, homeowners face significant obstacles:

Insurance Issues

  • Insurance unavailability causing real estate deals to collapse (13% of California transactions were canceled in 2024 due to insurance issues)

  • Financial burdens of continuing mortgage payments on destroyed homes

  • Uncertain rebuilding timelines

Building Requirements

  • New construction in high and very high fire hazard zones must comply with Chapter 7A of the California Building Code

  • Requirements include ignition-resistant materials for exterior walls, roofs, and underfloor areas; ember and flame-resistant vents; fire-resistant windows; and specific vegetation management

  • These materials generally cost more than traditional materials (ranging from $1-13.50 per square foot)

Timeline Realities

  • Rebuilding could take 5-6 years or longer

  • Reference to 2018 Woolsey fire: only 52% of destroyed properties rebuilt by 2024

  • Construction costs expected to rise due to high demand

  • Officials estimate 75% of Palisades residents won't return

Path Forward: ADU-First Option

Executive Order N-9-25 created a crucial "bridge" solution allowing people to return to their property quickly while working on long-term rebuilding plans:

Key Elements That Speed Up Return

  1. ADU-First Option

    • Build and occupy ADU before main house

    • Provides immediate housing on property

    • No need to wait for complete rebuild

    • Typical timeline: 3-4 months vs 2+ years for full house

  2. Streamlined Approvals

    • Environmental review requirements suspended

    • Coastal permitting requirements relaxed

    • Faster building permit process

    • Reduced bureaucratic hurdles

This approach allows residents to:

  • Return within 3-4 months in an ADU

  • Oversee property cleanup

  • Plan permanent rebuild thoughtfully

  • Maintain community connections

Lessons from Paradise

The experience of Paradise, California following the 2018 Camp Fire offers important insights for recovery. After losing over 18,000 structures, Paradise implemented comprehensive rebuilding strategies that prioritized fire safety and community resilience:

  • Establishment of the Rebuild Paradise Foundation, providing grants for defensible space, pre-approved floor plans, and assistance with construction costs

  • Implementation of AB-38, requiring enhanced fire safety measures

  • Work with the Insurance Institute for Business & Home Safety to strengthen building codes

These efforts have made Paradise California's fastest-growing city, demonstrating that with proper planning and support, communities can rebuild stronger and more resilient after devastating wildfires.

Looking Ahead

The 2025 Los Angeles fires represent not just a disaster but a turning point in how California approaches development in fire-prone areas. The combination of stricter building codes, inevitable reclassification of foothill communities into higher fire risk categories, and insurance requirements signals a fundamental shift in development patterns.

The state now faces tough choices:

  • Allow significant insurance rate increases

  • Reform regulations

  • Accept reduced coverage availability

  • Consider managed retreat from high-risk areas

The traditional model of insuring homes in fire-prone areas may no longer be viable, challenging fundamental assumptions about where and how we build, particularly in foothill communities. The recovery from these fires will not just be about rebuilding what was lost, but reimagining more resilient, sustainable communities for California's future.