The threat of a major wildfire in the Lake Hollywood area and surrounding hillside communities (from the 5 Freeway to the 405, and including 90049 west of the 405) presents an unthinkable economic and human cost. Unlike areas with lower population density, these zip codes contain a significantly higher concentration of homes, many valued in the tens of millions, with some even exceeding $100 million.

The 2025 Palisades Fire tragically demonstrated the devastating scale of destruction possible, consuming 23,448 acres and destroying 6,837 structures, making it the most destructive wildfire in Los Angeles City’s history. Should a fire of similar magnitude and intensity occur in our denser, high-value hillside communities, the losses would be far more severe:

• Total Homes Lost: Estimates suggest such a disaster could destroy 8,000 to 12,000+ homes and structures, far exceeding the numbers seen in the actual Palisades Fire due to higher property density.

• Total Financial Impact: The direct property damage alone would be catastrophic, conservatively estimated in the tens of billions of dollars, and could realistically exceed $100 billion, potentially reaching $200 billion or more, given the concentration of ultra-luxury real estate. This dwarfs the $28.0 billion to $53.8 billion in property damages estimated for the entire 2025 Los Angeles wildfire season.

Beyond property, such a fire would trigger immense cascading economic impacts, including billions in lost economic output and labor income, significant job losses, and a profound increase in insurance premiums across the state. This is not just a local neighborhood issue; it’s an existential threat to Los Angeles’s economy and its residents.