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The Economic Impact of the Greater Los Angeles Wildfires and How the Food Bank Will Respond

The Economic Impact of the Greater Los Angeles Wildfires and How the Food Bank Will Respond

The Greater Los Angeles wildfires may have been extinguished, but the road to recovery is long. The Food Bank is here to help.

Without a doubt, the recent Greater Los Angeles wildfires shook our communities. Just two of the fires – the Palisades and Eaton fires – consumed 23,400 and 14,000 acres, respectively, and destroyed approximately 16,000 structures, causing tens of thousands of individuals and their families to lose their homes, vehicles and everything they knew.

According to a recent study by the UCLA Anderson School of Management, the fires will impact not only those directly affected but also people throughout Los Angeles County (and even California as a whole). Combined, the Greater Los Angeles wildfires burned 55,000 acres, costing between $76 billion and $131 billion, with insured losses estimated at $45 billion. Homes were lost, but businesses were also impacted, causing thousands to lose their livelihoods. According to this study, there will be an approximate wage loss of $297 million in 2025 for local businesses and employees in the affected areas.

The impact of the wildfires goes beyond the areas directly affected. With hundreds of thousands displaced, the loss of properties will reduce the housing supply and, therefore, increase demand for rental units in the nearby area. According to the UCLA report, within the first 10 days of the fires, rental properties increased 10%, not only impacting those who lost their homes but also increasing rent for those currently renting. Additionally, property owners can expect an increase in insurance premiums as insurance companies will be expected to make billionaire payouts to those impacted. 

With lost homes and businesses, individuals like housekeepers, gardeners, and landscapers who worked in the affected areas and were already living paycheck to paycheck are now having to seek other forms of income. According to CalMatters, approximately 35,000 jobs could be lost permanently due to the fires. While the U.S. Labor Department and the State of California have granted the region $10 million each to create temporary jobs, the road to recovery may take longer than expected.

Due to the widespread wildfires, the Los Angeles Regional Food Bank ramped up its services to better serve the affected communities while still serving the rest of LA County in the best way possible. The Food Bank worked alongside other organizations and government agencies to help distribute food items and other essentials to displaced individuals and families through various distribution events.

Thanks to the support from the community, donors, volunteers and partners, the Food Bank was able to and continues to serve those impacted by wildfires. In the first week since the fires started, the Food Bank’s poundage intake increased by 30%, and volunteers prepared record-breaking food kits that would be delivered and distributed at evacuation centers. 

There is no way to predict how long the recovery period will take. Still, the Food Bank will continue supporting displaced families, those who have lost their livelihood, and every other situation as long as it is needed. Consider donating monthly to the Food Bank and making an impact year-round.

More Stories from the LA Regional Food Bank

Karina’s Story: How FISH of West Valley Helps Families Like Hers Thrive

For Karina, putting food on the table isn’t always easy—especially at the start of each month, when resources run thin.

The Los Angeles Regional Food Bank Receives a Donation of Over $50k from Uniqlo to Support the Greater LA Wildfire Relief

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Stephanie Dinh: A Teen Volunteer Making a Powerful Difference at FISH of West Valley

At just 17 years old, Stephanie Dinh is already an inspiring force in her community by volunteering at FISH of West Valley.

Seventeenth Annual Food From the Bar Campaign Raises More Than $600,000 to Fight Child Hunger

Local law firms, legal services organizations, law schools and government legal offices raised $602,078 for the Food Bank as part of Food From The Bar.

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