Markets & EconomyNews Brief

California fires threaten over 172K homes worth billions

CoreLogic reports staggering estimates for reconstruction

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The wildfires ravaging Napa and Santa Rosa since Sunday night have put a total of 172,117 homes at risk that would take a staggering $65 billion to rebuild, according to a new report from CoreLogic.

corelogic fires

Courtesy of CoreLogic

The table shows the number of homes in each risk category — Low, Moderate, High and Extreme — based on CoreLogic’s Wildfire Risk Score (1-100) for the two metropolitan areas where five active fires still blaze.

“Although the majority of homes, 161,059, or 94 percent, are at Low or Moderate risk of damage, wildfire can easily expand to adjacent properties and cause significant damage even if a property is not considered high risk in its own right,” the report noted.

The state of California has approximately 9.1 million homes at some level of wildfire risk, according to CoreLogic. This topples $3.1 trillion in reconstruction cost value (RCV).

The RCV estimates consider geography, labor and materials in estimating the cost of rebuilding. The cost for total reconstruction does not account for homes with less than 100 percent damage; therefore, the analysis represents total and maximum risk rather than predicted loss.

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The fires have reportedly taken no less than 15 lives, and an intense drought and fast winds are only fueling the flames scorching 100,000 acres.

Email Britt Chester