LA Wildfires: The Wealthy City Reduced to Ashes

Massive wildfires have continued to ravage the city of Los Angeles in Southern California since Tuesday evening, January 7, 2025. Authorities now describe the situation as the deadliest natural disaster in the modern history of this affluent metropolis—home to Hollywood, the historic hub of American cinema and prominent American actors.

By Monday morning, January 13, 2025, local officials reported at least 24 fatalities, with tens of thousands of homes, businesses, schools, and churches destroyed. Over 180,000 people remain under evacuation orders, and losses could reach $150 billion.

City officials say the scale of this catastrophe is unprecedented, noting that it is effectively impossible to fight under such extreme weather conditions. Climate scientists warn that California faces a “compound disaster,” involving rising temperatures, erratic swings between flooding and drought, and a decline in rainfall. These factors amplify ordinary natural and human factors, creating a devastating natural calamity.

Who Are the Biggest Celebrities Who Lost Their Properties in Los Angeles?

Dozens of wealthy residents and celebrities have lost homes worth hundreds of millions of dollars, rendering them homeless in the aftermath of the fires. Brydon Giros, an entrepreneur and app developer who owns a well-known branding agency, told the Financial Times:

“What’s happening today is creating a crisis of homeless millionaires.”

Giros’ home in Pacific Palisades was destroyed, forcing his family to stay with friends in a distant part of the city. He added, “All we have are the clothes on our backs—nothing else.”

Meanwhile, Paris Hilton stated on her Instagram account that she felt “an indescribable sadness” after losing her home, watching it burn down on live television.

Among other celebrities who were evacuated is This Is Us star Mandy Moore, who wrote on Instagram that she is staying with friends and has “no idea if her home made it.” The famed actor couple Jamie Chung and Bryan Greenberg lost their home to the fires and have called on Americans to donate and support other wildfire victims in Los Angeles who have been displaced.

A representative for Oscar-winning actor Jeff Bridges confirmed to USA Today that his family home in Malibu—which he inherited from his parents—was lost in the Pacific Palisades blaze. Emmy nominee Milo Ventimiglia, in an interview with CBS News, revealed that his family home in Malibu was also destroyed; he toured the neighborhood with CBS to survey the damage.

Famed actor James Woods tearfully recounted on CNN how his house was completely destroyed, recalling how he and his family were “in the very center of the blaze,” forced to evacuate with only the clothes they were wearing.

What Is the Extent of the Economic Losses, and What Are the Implications?

AccuWeather, a weather forecasting service, estimates the financial damage from the wildfires could surpass $150 billion. All this comes as Los Angeles was preparing to host the 2028 Olympic Games, leaving uncertainty as to whether the city can recover in time.

According to The Economist, the blazes in Los Angeles may be among the most expensive wildfires ever. Homes in Pacific Palisades—a neighborhood still ablaze—sell for around $4 million these days. Many of Hollywood’s most prominent figures have already lost their properties there.

The magazine further notes that the wildfires will highlight another looming crisis in California’s frail insurance market. In recent years, major insurers—including Allstate—have retreated from providing home and disaster coverage in the state. In March 2024, State Farm canceled 30,000 homeowners’ policies, including 1,600 in Pacific Palisades, an area now reduced to ashes. The company cited rising wildfire-related risks as the reason for withdrawing from the market.

Until recently, Californian law prevented insurance companies from using catastrophe-risk modeling in their rate calculations. Although climate change has increased the likelihood of wildfires, insurers were unable to factor that into their pricing. As a result, many have refused to assume such risks.