Home values throughout California could face downward pressure following the Los Angeles-area wildfires as increases in insurance premiums exacerbate the state’s affordability crisis, S&P Global Ratings said.
Property owners may struggle to secure adequate insurance, increasing risk and lowering a home’s perceived value across California, especially in disaster-prone or high-risk areas, according to the report released Friday.
“This will be problematic for a state that has already been experiencing muted population growth as many people leave for more tax-friendly affordable places to reside,” S&P analysts led by Patricia A. Kwan wrote in the report.
Bloomberg Markets
By Maxwell Adler and John Gittelsohn
January 24, 2025