California's Wildfires Are the Latest Natural Disaster to Shock Housing Markets

October 12, 2017
Photo: Pixabay

While the ultimate cost of human life and housing remains unclear at this time for California, experts are positing it may take five to 10 years before homes, infrastructure, and employment regain a sense of normalcy.

Compounded by Hurricanes Harvey and Irma, along with the labor shortage, the price of construction is poised to accelerate with an overflow of demand. Homeowners with insurance premiums are faced with the scenario that they may not get enough money to rebuild their homes as they were previously, reports.

The disaster is expected to ravage the housing markets of this highly prosperous region, with slashed prices, scarce availability, and wrecked infrastructure—all factors that will need to be taken into account as displaced homeowners decide whether to return and rebuild, or leave the area for good. The multibillion-dollar tourist industry, and the jobs it provides, is also at risk. It's likely to take up to a decade to rebuild the homes, businesses, and essential services such as schools residents will need should they choose to return.

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