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At least 5 dead as wildfires devastate upscale Los Angeles enclaves

January 9, 2025
in Finance
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At least 5 dead as wildfires devastate upscale Los Angeles enclaves
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More than 100,000 residents in southern California were ordered to evacuate and five people were confirmed dead as wildfires raged out of control across the Los Angeles region for a second day.

The blazes spread to the Hollywood Hills on Wednesday, forcing evacuations from the densely populated hillside neighbourhoods overlooking iconic attractions including the Hollywood Bowl and the Walk of Fame.

The Hollywood fire put further pressure on firefighters who have been struggling to contain multiple blazes across the city and its suburbs since one started on Tuesday in Pacific Palisades, one of the most exclusive neighbourhoods in the US.

Insurers are bracing for what is expected to be one of the costliest natural disasters in California’s history.

Strong winds have fanned flames in at least four different locations across more than 25,000 acres, sending dark plumes of acrid smoke and ash across the city. Wind gusts ranged from 50 to 80 miles an hour throughout the region, said the National Weather Service, frustrating efforts to contain the fire.

The air quality in much of Los Angeles was deemed “very unhealthy”, with parts of the city far from the fires smelling strongly of smoke. At a news conference on Wednesday, authorities acknowledged that they were struggling to catch up with the rapidly unfolding events.

Los Angeles County firefighters spray water on a burning home as the Eaton fire spread through Altadena, California on Wednesday © Getty Images
The steeple of a church burns as a result of the Palisades wildfire in Pacific Palisades
A destroyed church following the wildfire in Pacific Palisades © Caroline Brehman/EPA-EFE/Shutterstock

Little was known about how the fires began, but the windy conditions that have allowed them to spread are expected to persist. Low humidity and drought conditions are expected to continue in Los Angeles and Ventura counties until at least Friday.

California governor Gavin Newsom declared a state of emergency, which enabled the National Guard to be deployed. President Joe Biden on Wednesday released federal funds to pay for temporary housing, home repairs and loans to cover uninsured property losses. The county of Los Angeles said schools would be closed on Thursday.

Destruction began on Tuesday in Pacific Palisades, home to high-profile Hollywood stars including comedian Billy Crystal and Paris Hilton, whose homes were among more than 1,000 buildings destroyed.

Fire quickly spread north to Malibu and threatened buildings in Santa Monica to the south, as embers carried by heavy gusts engulfed entire streets. That fire has since spread to more than 15,800 acres.

Areas to the north and east of Los Angeles have also gone up in flames, including in the San Fernando Valley, Santa Clarita, Altadena and Pasadena.

Efforts to contain the blazes on Wednesday were impeded because so-called super scooper aeroplanes, which pick up water from the ocean, were grounded by high wind. However by evening, helicopters were dropping water on the Hollywood fire.

Map of Los Angeles showing active wildfires in the past 24 hours. More than 2,900 acres had burnt in the hills around Pacific Palisades, an affluent coastal community with some of the most expensive property in the US

Pacific Palisades residents, some of whom fled on foot on Tuesday, have been calling friends and family to find out whose homes were still standing. Many who evacuated to nearby Santa Monica were told they needed to move again as the flames followed.

“This is a tragic time for our history here in Los Angeles,” said Jim McDonnell, chief of the Los Angeles Police Department. “It’s critical that we be patient, come together and stay focused on saving lives.”

The fires have halted work in Hollywood and forced pre-Oscar screenings and celebrations to be postponed. Warner Bros shut down production on its lot in Burbank because of the fires, and Paramount postponed the premiere of its new film, Better Man. Universal cancelled a party on Friday hosted by Donna Langley, chair of NBCUniversal Studios & Entertainment.

Early predictions of the financial devastation have started to roll in, with AccuWeather estimating the total damage and economic loss could be as much as $57bn.

In the Palisades area, home prices average about $3.5mn, meaning billions of dollars in claims could be filed for that neighbourhood.

The Climate Capital

Where climate change meets business, markets and politics. Explore the FT’s coverage here.

Are you curious about the FT’s environmental sustainability commitments? Find out more about our science-based targets here

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