Following massive wildfires that broke out simultaneously across the LA region, resulting in the destruction of at least 12,000 homes and buildings, demand for housing from affected residents has surged in Orange County (OC), according to reports.

On the 24th, real estate industry sources confirmed that some of the wildfire victims from LA are relocating to OC and Santa Monica.

Alex Jang, branch manager at New Star Realty’s Fullerton office, said, “Many people, including Koreans and other Asian Americans, are inquiring about Fullerton and Buena Park in OC. In Fullerton alone, concerns about falling home prices last year led to 30% of listings being canceled, but since the wildfires, properties are re-entering the market, and transactions are picking up significantly.”

In particular, demand for rentals in OC—both long-term and short-term—has soared to unprecedented levels. Jang noted, “Comparing demand before and after the fires, it has more than doubled. Regardless of whether it’s long-term or short-term, there’s a strong market sentiment pushing for deals in safe, decent areas.” He added, “It seems victims perceive areas like Brentwood and North LA as vulnerable and unsafe due to the wildfires. Those who lived near the coast still prefer coastal living but find moving to San Diego or Dana Point too far, so demand is concentrating in Newport Beach in OC.” Additionally, compared to LA County, OC boasts fewer homeless individuals, lower crime rates, top-tier school districts, and thriving Korean business districts in Fullerton and Buena Park, all of which enhance its appeal.

Santa Monica is also seeing an influx of relocation demand. Jang explained, “High-end homes in Santa Monica weren’t selling well, but now, with customers realizing inventory might disappear due to the fires, inquiries have spiked. A home listed since late last year recently opened escrow, received multiple offers, and sold above the asking price.”

He attributed the surge in demand for sales and rentals of luxury homes near Santa Monica to the difficulty of leaving established lifestyles behind. Staying near their previous residences makes it easier for victims to handle insurance claims for homes, cars, and other losses caused by the wildfires. Jang said, “With over 10,000 homes completely destroyed, there’s a lot to prepare—filing paperwork for insurance claims and ensuring kids can still attend school—so moving far away isn’t practical.” Current rental prices in the area range from $6,000 to $10,000 per month, but with demand skyrocketing, available inventory is reportedly nonexistent.

Jang predicted that with over 10,000 homes affected, the market will inevitably experience chaos for the time being. He explained that since many of the damaged properties were in upscale neighborhoods, there’s likely to be a concentration of demand in relatively safer areas.

He recalled, “In the early 2010s, when authorities undertook major freeway construction, about 1,000 homes were relocated, creating demand for hundreds of properties and causing a significant shortage. We’re seeing a similar phenomenon now, but the difference is the demand is much greater this time.” He added, “People who were previously on the fence about buying homes were in wait-and-see mode, but with the influx of wildfire victims, demand has exploded.”

<Hongyong Park>