{"id":180651,"date":"2025-01-24T11:18:51","date_gmt":"2025-01-24T18:18:51","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=180651"},"modified":"2025-01-24T11:19:40","modified_gmt":"2025-01-24T18:19:40","slug":"housing-markets-with-the-highest-wildfire-and-climate-risks","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/housing-markets-with-the-highest-wildfire-and-climate-risks","title":{"rendered":"Housing Markets With the Highest Wildfire and Climate Risks"},"content":{"rendered":"\n

I <\/span>personally<\/span> live in Los Angeles, so I wanted to calculate and measure which areas were already prone to wildfire risk, according to the Federal Emergency Management Agency (<\/span>FEMA<\/span><\/a>). Then, I took it one step further to analyze the climate risk across every market in the United States. <\/span><\/p>\n\n\n\n

Real estate investors (especially <\/span>out-of-state investors<\/span><\/a>) should be aware of the potential for natural disasters <\/span>that may occur<\/span> in their particular market, or they may want to consider investing in a more climate-resilient market altogether.<\/span><\/p>\n\n\n\n

But first, let\u2019s discuss Los Angeles.<\/span><\/p>\n\n\n\n

Los Angeles\u2019 Wildfire Risk by Census Tract<\/span><\/h2>\n\n\n\n

My heart goes out to the victims of the fire. I live in the San Fernando Valley, which has been relatively untouched <\/span>as of now<\/span> unless you count hazardous air quality. But I was <\/span>particularly surprised<\/span> when I saw FEMA\u2019s breakdown of wildfire risk by census tract (census tracts can <\/span>be thought<\/span> of like ZIP codes for <\/span>the purpose of<\/span> this article):<\/span><\/p>\n\n\n\n

\"wildfire
Wildfire risk in Los Angeles (Jan 2025) – FEMA<\/span><\/a><\/em><\/figcaption><\/figure>\n\n\n\n

In the middle of the map is the San Fernando Valley. If you look at the map, you\u2019ll see the fires are occurring pretty much <\/span>exactly<\/span> within FEMA\u2019s boundaries for wildfire risk (while census tracts with white \u201cno rating,\u201d like inner San Fernando Valley and the inner city, aren\u2019t on fire).<\/span><\/p>\n\n\n\n

\"active
Active threats (Jan 2025) – California Department of Forestry and Fire Protection<\/a><\/span><\/em><\/figcaption><\/figure>\n\n\n\n

Of course, just because an area is \u201cat risk\u201d for wildfire doesn\u2019t mean it <\/span>will<\/span><\/em> catch fire, just that <\/span>it might<\/span><\/em>. <\/span><\/p>\n\n\n\n

Also, just because areas like the San Fernando Valley have virtually no wildfire risk (aside from poor breathable air quality), that doesn\u2019t make them immune to other disasters like earthquakes. <\/span><\/p>\n\n\n\n

Los Angeles\u2019 Earthquake Risk by Census Tract<\/span><\/h2>\n\n\n\n

If we toggle on the \u201cEarthquake Risk Index,\u201d we get a very different image:<\/span><\/p>\n\n\n\n

\"earthquake
Earthquake risk in Los Angeles (Jan 2025) – FEMA<\/span><\/a><\/em><\/figcaption><\/figure>\n\n\n\n

Virtually all census tracts are at \u201cRelatively Moderate\u201d to \u201cVery High\u201d risk for earthquakes. <\/span><\/p>\n\n\n\n

The Los Angeles Fires: A Warning for Property Owners<\/span><\/h2>\n\n\n\n

Before we <\/span>move on to analyzing<\/span> the markets with the most (and least) climate and natural disaster risk, what lessons can real estate investors learn from the devastating Los Angeles fires?<\/span><\/p>\n\n\n\n

The fires have <\/span>been devastating for<\/span> everyone in Los Angeles, especially those directly affected. While there are many lessons to be learned and applied at the municipal level to help better prepare for future disasters, this event should also serve as <\/span>a warning for property owners<\/span><\/a> to have adequate insurance. <\/span>One source<\/span><\/a> estimates that thousands of homes had their policies <\/span>cancelled<\/span> a few months before the fires, and not everyone renewed their policy in time. Renters and homeowners <\/span>living<\/span> in high-risk areas should also have emergency kits prepared just in case.<\/span><\/p>\n\n\n\n

Markets With High Wildfire Risk<\/span><\/h2>\n\n\n\n

Now, <\/span>let\u2019s take a closer look at<\/span> other markets that <\/span>have a higher risk for<\/span> wildfires and other climate-related disasters.<\/span><\/p>\n\n\n