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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 billion-dollar 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.

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