SoCal Wildfire Early Damage Estimate Reaches $52B As Flames Edge Toward Downtown Santa Monica

Deadly wildfires across Los Angeles have displaced tens of thousands and destroyed more than 1,000 structures, making the Palisades fire the city’s most destructive in history. Strong winds and limited water supplies continue to hinder firefighting efforts. Bisnow is covering this unfolding crisis with updates from reporters on the ground in the city. Have a story, photo or property update? Email us at editors@bisnow.com. Stay tuned for our real-time coverage.

Fires blazing across Southern California exploded in size Wednesday, taking out commercial buildings in some areas while creeping closer to commercial districts in places like Santa Monica.

An early estimate by AccuWeather places damages around $52B.

Pacific Palisades, Malibu, Santa Monica, Sylmar, Altadena and Pasadena are among the areas impacted either by flames or evacuation orders. Nearly 27,000 acres have been affected, and five people are reported dead.

“This is already one of the worst wildfires in California history. Should a large number of additional structures be burned in the coming days, it may become the worst wildfire in modern California history based on the number of structures burned and economic loss,” AccuWeather Chief Meteorologist Jonathan Porter said in a post by the forecaster.

“AccuWeather experts estimate the total damage and economic loss from the windstorm and wildfires in Southern California is between $52 and $57 billion,” Porter added. “This is a terrible disaster. We’re just starting to get a clear look at the magnitude of the destruction and loss.”

Winds are expected to be less violent Wednesday night, but with red flag conditions forecast through Friday evening, the region isn't in the clear yet. 

“Southern California is continuing to endure some of the most historic fire conditions on record,” Los Angeles Fire Chief Kristin Crowley said at a press conference Wednesday evening. 

Lake Avenue, a main commercial street in Altadena, was hit hard by the nearly 11,000-acre Eaton fire Wednesday afternoon, with an Aldi and a Bank of America branch among the properties that suffered damage in the fire. A library, a senior center and a school were also burned, NBC 4 reported. 

The Eaton fire has destroyed or damaged between 200 and 500 structures so far, Pasadena Fire Chief Chad Augustin said at a press conference Wednesday afternoon. 

Officials expanded evacuation zones for the Palisades fire, which is burning along the iconic Pacific Coast Highway. The fire reached nearly 16,000 acres by Wednesday afternoon and has damaged or destroyed at least one school and multiple restaurants. An estimated 1,000 structures have been affected in the Pacific Palisades neighborhood.

At least 1,000 structures have been lost in the #PalisadesFire, but @UCLA climate scientist Daniel Swain says he would not be surprised if it is in the multiple thousands. “Preliminary numbers are often quite conservative.” #CAwx pic.twitter.com/IxkWBGqjg2

— UCLA Environment (@UCLAIoES) January 8, 2025

The Palisades and Eaton fires are joined by the smaller but still significant Hurst and Woodley fires. All four are zero percent contained after burning for more than 24 hours. A new fire started Wednesday evening in the Hollywood Hills and was dubbed the Sunset fire.

Evacuation orders for the massive fire on the Westside have been expanded as the blazes across the city have grown exponentially. The Palisades fire’s evacuation zones are moving closer to the city’s commercial district. A main commercial street in Altadena, where the Eaton Fire is burning, has already seen buildings aflame. 

The city of Santa Monica’s expanded evacuation order includes all areas north of Montana Avenue from the beach to 11th Street. All other areas north of Montana Avenue not covered by the order are under an evacuation warning, the city said, as are all areas north of Wilshire Boulevard and west of 10th Street. 

This area is primarily residential but includes schools and retail space. The evacuation warning zone, where people are advised to be prepared to evacuate but haven’t yet been ordered to do so, reaches closer to commercial areas, with the southern edge of the warning zone roughly a mile from downtown Santa Monica.

“We’re facing a historic natural disaster. I think that can’t be stated strong enough,” Kevin McGowan, director of the Los Angeles County Office of Emergency Management, said at a Wednesday morning press conference of city, county and local officials. “This is not a normal red flag [event].” 

“There are not enough firefighters in LA County to address four separate fires of this magnitude,” Los Angeles County Fire Chief Anthony Marrone said at a Wednesday morning conference, adding that he had asked for additional firefighters from surrounding counties and the state.

Real estate developer Rick Caruso called in to two television stations Tuesday to voice his frustration at what he termed “absolute mismanagement by the city,” noting that some fire hydrants in the Palisades didn't have water, according to Commercial Observer. Caruso developed and owns Palisades Village, a high-end outdoor shopping mall in the neighborhood that has been damaged by the fire along with homes surrounding it. 

This is what’s left of the Pacific Palisades. The mall survived. Most everything else is gone. Homes, apartment complexes… businesses. pic.twitter.com/Vfz721V48J

— Jonathan Vigliotti (@JonVigliotti) January 8, 2025

Caruso and others online also criticized LA Mayor Karen Bass for not being in the city when the fires began. Bass was on a presidential delegation in Ghana to attend the inauguration of that country’s president. She returned to Los Angeles on Wednesday.

County officials also directly addressed criticism about the water availability in the Palisades. 

“The municipal water systems that service our homes and businesses continue to work effectively, however, they are not designed to fight wildfires,” Los Angeles County Public Works Director Mark Pestrella said at the press conference, noting that the county and city of Los Angeles both provide water to parts of the Palisades. 

“A firefight with multiple fire hydrants drawing water from the system for several hours is unsustainable,” Pestrella said. “This is a known fact. That's why air support is so critical to the firefight, and unfortunately, wind and air visibility have prevented that support.” 

The winds that have fanned the flames have also grounded helicopters that provide critical water drops in the event of forest fires. 

“We're fighting a wildfire with urban water systems, and that is really challenging,” said Los Angeles Department of Water and Power CEO and Chief Engineer Janice Quinones.

Quinones asked locals to conserve water so it can be used by firefighters. 

Quinones said that four times the normal water demand was seen and sustained for 15 hours straight in the Palisades area as firefighters worked to control the blaze. Quinones said that at 3 a.m. Wednesday, all the hydrants in the Palisades went dry. First responders and local agencies are now using water tanker trucks to get water from nearby areas and bring it into the area, she said. 

“We pushed the system to the extreme,” Quinones said.