After the wildfires: What a long rebuilding process will look like for Los Angeles homeowners

By Bob Woods
CNBC
January 26, 2025
Category: Finance & Economics
Region: United States, US West

While the current wildfires are forecast to be the costliest in U.S. history, the Golden State, unfortunately, is all too familiar with rebuilding communities wracked by previous wildfires, including Santa Rosa and Paradise in Northern California in 2020. That was 10 years after the state’s fire codes went into effect, so contractors are attuned to working with fire-resistant materials. Increased demand, however, could possibly stress materials manufacturers as well as their shippers, distributors and retailers. Specifically regarding lumber, though, increased tariffs threatened by President Donald Trump on Canada, a major source, might burden supply chains and raise prices, which will be absorbed by homeowners. “That could have a far greater impact on the cost of rebuilding in California than any [materials] price increases or enhanced marketplace dynamics,” Dunmoyer said.

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