In other parts of California burned by past wildfires, communities are still dealing with the fallout years later.

The fires raging in Southern California offer a tragic preview of how the climate crisis will exacerbate homelessness.

Communities that have seen homeownership rates rise may struggle amid more competition for available housing and rising mortgage rates. Overall, the financial impact of the massive wildfires, already estimated to be among the costliest disasters in U.S. history, could have far-reaching implications on the market.

The Los Angeles fires expose California’s difficult road to navigate between disaster risk and solving the state’s housing crisis.