The wildfires in Los Angeles have been nothing short of devastating.
Tens of thousands of people from all walks of life have been displaced and watched their homes – and the memories they hold – burn to the ground in the harrowing blazes that have enveloped various parts of California.
Among the countless people displaced from their houses are notable Hollywood celebrities from the world of film and showbiz.
© Getty ImagesMany have opened up about their own experiences and, thanks to their status and influence as famous names, helped civilians who are also facing monumental loss and encouraged others to do the same. The community spirit of LA has been remarkable.
Stars including Paris Hilton, Tina Knowles and Joshua Jackson all had homes in the area that have tragically burned down.
And while Hollywood names undeniably have the luxury of fortune to rebuild their home or purchase elsewhere, there are huge drawbacks facing the real estate market of renting and buying property that will undoubtedly affect everyone.
The challenges facing the Hollywood real estate market
One immediate issue is the losses reported by insurance companies and the effect on the economy. Reuters reports that catastrophe risk modeling firm, KCC, is estimating insured losses of $28 billion – making them the costliest wildfires in US history.
KCC also states in their report that losses include actual damage from fires and smoke as well as guaranteed replacement cost coverage and demand surge.
The 2024 and 2025 wildfire seasons have pushed California to its limits.
© Anadolu via Getty ImagesGlobal analytics firm Verisk, as per Reuters, has reported similar stats and estimates property losses from the Palisades and Eaton fires in the range of $28 billion to $35 billion.
Insurance Business Magazine states that economic losses were between $150 billion and $275 billion.
But when it comes to those seeking new homes, they are undoubtedly most affected.
Amber Ryland, a California-based real estate agent, spoke to HELLO! about the issue of sky-rocketing rental prices in the immediate aftermath of the blazes.
"We're already seeing rent increases of up to 300 per cent in some areas. This level of price gouging is not only unethical but also illegal under California law, which caps rental increases at 10 per cent in emergencies.
"Los Angeles was already in a housing crisis before the fires, and now with over 10,000 homes destroyed, we face an even more urgent crisis. This tragedy has exposed the vulnerabilities in our housing system."
Amber also explained that the fires have had an emotional toll on everyone in the area, but particularly for "those who lost generational homes — properties passed down through families for decades.
© Getty Images"I predict we'll see a surge in home prices, much like during the pandemic. With a sudden increase in demand and limited supply, the competition will undoubtedly drive prices higher."
Many well-known celebrities have been known to purchase land and build their own properties, but this won't necessarily be a good alternative moving forward, Amber said.
"Contractors are likely to charge a premium due to the sheer volume of demand, and the rebuilding process will take years. Unfortunately, many families may feel they have no other choice but to leave the state altogether."
© Getty ImagesFellow CA-based realtor Matt Gavlick agreed that the dynamics of the real estate market have shifted and will be altered for the foreseeable future.
"Many owners in areas like Malibu and the Pacific Palisades are expressing deep fatigue and frustration from dealing with fire risks year after year and sadly some have lost it all. This has led to a noticeable migration toward communities less prone to wildfires, particularly coastal areas away from the hills like the South Bay.
"With an already low inventory and the devastating loss of up to 12,000 homes, the demand is surging, creating a highly competitive environment."
© Getty ImagesWe're already seeing rent increases of up to 300 per cent in some areas. This level of price gouging is not only unethical but also illegal under California law.
Jennifer Obaseki, UK-based founder and director of Obaseki Solicitors who has a breadth of knowledge on the US property market, also spoke to HELLO! about the issue of costly insurance that will have ramifications for residents.
Jennifer explained that the issue isn't exactly new.
"The problem stems from decades of insufficient housing construction, restrictive zoning laws, and high demand.
"In fire-ravaged communities like Paradise, where the 2018 Camp Fire destroyed nearly 14,000 homes, rebuilding efforts have been painfully slow due to red tape, insurance barriers, and rising construction costs."
She added: "The 2024 and 2025 wildfire seasons have pushed California to its limits.
© Getty Images"Homeowners in these fire-prone areas are struggling to secure insurance. Many providers have stopped issuing or renewing policies altogether, citing unsustainable financial risks.
"Those still offering coverage have drastically increased premiums or imposed strict mitigation requirements, such as defensible space and fire-resistant building materials, which add significant costs to homeowners.
Jennifer also explained that while many wealthy residents in the area are retreating to safer parts of California such as Beverly Hills or Palo Alto, this also presents broader challenges.
"Increasing numbers of affluent Californians are leaving for states like Florida and Wyoming, where lower taxes, fewer regulations, and a reduced threat of natural disasters are proving more attractive."
Jennifer concluded: "The state's fate will also depend on whether President Trump's promises translate into tangible benefits for California's residents.
"The coming years will determine whether the Golden State can reclaim its promise of opportunity and sustainability – or if it will continue to lose its population and vitality to the pressures of climate, cost, and crisis."
© BACKGRIDThe celebrities who have lost homes in the fires
In addition to the tens of thousands of those now without homes in LA and surrounding areas, some of the well-known public figures who have tragically lost houses include Adam Brody and Leighton Meester, Milo Ventimiglia, Sir Anthony Hopkins and Mandy Moore.
Hilton heiress Paris Hilton was one of the first famous names to share she'd lost her home, writing: "This home was where we built so many precious memories. It's where Phoenix took his first steps and where we dreamed of building a lifetime of memories with London."
The latest update on the California wildfires
Many fires are still ongoing including the Palisades fire, which is contained at 70 per cent according to Sky News, and the Eaton Fire near Pasadena, contained at 90 per cent. Both blazes broke out over two weeks ago.
The Hughes Fire is one of the latest fires to have broken out this week after a blaze ripped through the northwest area of LA near Castaic Lake.
Overall, the death toll has devastatingly climbed to 28, with 22 still missing. Nearly 16,000 structures have been destroyed across multiple areas, according to California's fire department.
