California is the US state most affected by wildfires as of 2023, according to the National Interagency Coordination Center. Extreme heat and longer droughts have driven more intense fires, and that has prompted insurance companies to flee.

Collectively, the losses — whether in the hundreds or, as is far more likely, in the thousands — will weigh on the city’s already urgent housing shortage.

With strong winds, dry conditions and no immediate end in sight, analysts project total economic losses of $50 billion to $150 billion.

The wildfires that destroyed homes in multiple sections of the Los Angeles area will test California’s efforts to stabilize the state’s insurance marketplace after many insurers stopped issuing reside

With flames driven by hurricane-force winds, “it feels like Armageddon,” said one woman who was forced to evacuate. “It’s just smoke and darkness.”

Two massive wildfires menacing Los Angeles from the east and west were still burning uncontained on Thursday, but a brief respite from the fierce winds that have fanned the flames for two days allowed crews to slow their explosive spread.