Homes for Sale in Fire Zones Are Actually in ‘High Demand’

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The nation watched on as the Los Angeles’ Pacific Palisades wildfires tore through and completely demolished the area this week. By late morning on Jan. 8, the fires were “0% contained,” according to the L.A. Fire County Department, and the extremely strong winds “propelling multiple out-of-control wildfires” resulted in at least two deaths, the New York Times added. 

The L.A. enclave is beloved by celebrities, including Tom Hanks, Ben Affleck, Mark Hamill, Spencer Pratt, and Heidi Montag. On Jan. 7, the fires destroyed Pratt and Montag’s house, while other A-listers, including James Woods and Eugene Levy, had to evacuate, along with more than 30,000 residents.

Yet, despite the horrific news and the state of wildfires in the area in 2024, the California Association of Realtors forecasts that the state’s housing market will go up in 2025. Indeed, the report shows a 10.5% increase in single-family home sales, while it forecasts median home prices to increase 4.6%.  

However, that’s not to say that selling a house in an area prone to frequent wildfires is not without its challenges. For buyers, events like the Pacific Palisades fires might be a strong deterrent despite the highly desirable location of many of these houses.

So what does this mean for sellers who are eager to leave and start fresh in a less dangerous locale?

If you live in a fire zone, it makes sense you’d want to leave

In 2024, there were more than 62,000 wildfires across the county, which burned more than 8,851,142 acres, according to the Global Fire Monitoring Center.

The news is, admittedly, a mixed bag.

“This is below the 10-year average for the number of wildfires, but notably higher than the average for acres burned—by nearly 2 million acres,” according to the report.

In California alone, wildfires burned more than 1 million acres in 2024, and as we’ve seen, 2025 is getting off to a deadly start.

But with demand increasing, hope is not all lost in off-loading a property. If buyers are doing their homework, like consulting fire maps of the area, they might be convinced the buy is worth the risk.

“For many buyers, especially in high-demand areas like Malibu, the risks are weighed against lifestyle benefits,” says Daniel Cabrera, founder and CEO of Fire Damage House Buyer. 

For instance, he said that while some are deterred by increased insurance premiums and the threat of future fires, others are willing to pay a premium for location and amenities. 

“It’s often about educating buyers on risk mitigation strategies, like home-hardening and fire-resistant landscaping,” adds Cabrera.

The challenges of selling a home in a fire zone

This is not to say that selling a home in a fire zone isn’t an uphill battle. Lower property value, skyrocketing insurance premiums, and risks of losing everything can curb the enthusiasm and make buyers very hesitant—no matter how desirable the location is.

“Homes in fire zones can scare off some buyers like me because of all the risks and unknowns,” says Charissa Bright, owner and founder of Georgia-based Bright Buys Houses. “Places like Malibu, CA, still draw people willing to pay extra for the lifestyle.”

In addition to high insurance costs and fewer loan options, she explains that real estate agents might shy away from the commission. Fewer buyers, strict loan requirements, and the disclosure of fire risks make it very difficult to highlight what makes the property appealing.

In fact, many states require sellers to disclose if their home is in a fire zone. In California, for example, they must disclose if their home is in a “very high fire hazard severity zone,” which includes areas currently battling fires like the Palisades fire, says Max Dugan-Knight, climate data scientist at Deep Sky.

“This requirement will make selling homes in these areas more difficult, especially as a buyer may struggle to secure home insurance,” he says, adding that many buyers will hesitate if they foresee trouble getting home insurance. At the same time, banks may be less likely to sign onto a mortgage.

Which areas in the country have the highest fire risks? Let’s look at the map

Unsurprisingly, the top 15 metros with wildfire risks are in the Western United States. Of these, 10 are in California, according to CoreLogic data.

What’s more, in 2024, 5.5% of homes in the country were considered at severe or extreme risk of fire damage, according to the Realtor® 2024 climate report. In addition, 39.1% of these high-risk homes (worth $1.7 trillion) were in California.

Realtor.com also notes that L.A. has the highest total value of homes at severe or extreme fire risk. Meanwhile, Colorado Springs, CO, leads the rankings in terms of the share of property value at risk.

Know before you go

With all that said, there is actually a high demand for real estate in these risky areas. 

On the one hand, homeowners in wildfire-prone areas might be eager to sell their homes and limit their exposure to any future risk of fire damage, as properties that are at high risk of wildfire damage are increasingly difficult and costly to insure, says Hannah Jones, Realtor.com senior economic research analyst.

“Both of these forces may contribute to homes being more affordable in wildfire-prone areas,” adds Jones. 

She notes, however, that interestingly, previous research revealed that prices have grown more quickly in high-risk areas, pointing to “high demand” for these risky homes, likely driven by their relative affordability. 

But if there’s one major takeaway for both buyers and sellers, it’s this: Do your research.

Check if your home is truly in a fire zone before you fret about the value. Consult fire maps to confirm if your dream home is at risk of being destroyed by the elements.

Thankfully, there are several tools buyers and sellers can use to asses fire zones. For instance, Realtor.com displays wildfire risk information for homes and communities on its site.

The tools enable buyers to view wildfire risk on interactive maps and find information about wildfire risk for most properties on the market.

The information includes a fire factor rating based on a property’s cumulative risk of wildfire over the next 30 years.

It also shows information from the U.S. Forest Service, which compares wildfire risk at the county level with national averages.

Finally, Bright Buys Houses’ Bright recommends that if you’re looking to buy a home in a fire zone, in addition to using fire hazard maps, talk to local zoning offices and hire an inspector knowledgeable about fire safety to check the property.

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