California has experienced an increasing level of wildfire severity for the last several years. Each summer, it feels as if the wildfires become more prevalent, severe, and dangerous. What will they do to the real estate industry?
In the short term? Very little.
Home and commercial real estate prices across California are currently at historic highs. These soaring prices continue even in the face of significant wildfire activity. While the market right now is highly volatile, and there may be a dip soon, California will likely continue to be one of the country’s most expensive places to buy property.
In the long term? It’s anyone’s guess.
No one really knows what tomorrow’s real estate market will look like, no matter how confident they sound. Right now, a popular talking point is a “readjustment” or a bear market across the board, including real estate.
However, as climate change advances, wildfires will become even more prevalent. California is an extremely large state from a population and land mass standpoint. Eventually, there may be a tipping point in the possible number of fires and property damage that people will begin to look elsewhere.
What will keep people here?
California has several natural draws for people: the temperate climate, the beautiful beaches and the proximity to famous and influential people. These draws are impressive, but they aren’t necessarily going to last in the face of significant climate upheaval and wildfires.
With proper positioning and proactive policies, however, you can create contingency plans to secure your company for an uncertain future.