A July Department of Angels survey of 2,000+ survivors found the typical Los Angeles-area household is about $500,000 short of the funds needed to rebuild after the January 2025 Eaton and Palisades wildfires. The blazes destroyed more than 16,000 structures and left roughly two-thirds of survivors displaced. While relief options — including SBA loans, CalAssist mortgage support, zero-interest lender programs and state rebuilding funds — have emerged, significant funding gaps and a slow rollout mean many families still face long recoveries.
LA Wildfires Leave Homeowners About $500K Short of Rebuilding Costs, Survey Finds
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A July survey of more than 2,000 survivors of the January 2025 Eaton and Palisades wildfires found that a typical household remains roughly $500,000 short of the funds needed to fully rebuild after insurance payouts, according to reporting from LAist and a Department of Angels study.
Slow Rebuild, Severe Financial Strain
The fires — which have been tied to at least 31 confirmed deaths and the later identification of hundreds more related fatalities — destroyed more than 16,000 homes, businesses, schools and other buildings. Rebuilding progress is limited: about 150 homes have been rebuilt in the Eaton burn area and 36 in the Palisades.
Survey respondents described persistent displacement and mounting financial pressures: roughly two-thirds remain displaced, about half have exhausted major savings, and nearly half have taken on new debt. Temporary housing coverage provided through insurance has been exhausted or is expected to run out within a year for roughly half of survivors.
How Survivors Are Responding
Many families face hard choices as rebuilding costs far exceed insurance payouts. Some are borrowing more; others are deciding whether returning to their neighborhoods is financially feasible. When insurance coverage falls so far short, recovery can take years.
"There are still people out there who need help," said Ursula Hyman, co-founder of the Altadena Land Initiatives Corporation. Hyman told LAist her own home was badly damaged and her daughter’s was destroyed; her nonprofit hopes to rebuild many homes but currently has capital to complete only a fraction of the need.
Available Aid And New Programs
Some survivors applied for Small Business Administration (SBA) loans, though the official application window closed in June. Other relief options include the state’s CalAssist Mortgage Fund, which can provide up to a year of mortgage support, possible federal extensions of housing aid, and mortgage relief programs from some banks.
Newly emerging funds and pilot programs are targeting the rebuild gap. A Cathay Bank-backed fund offers zero-interest loans averaging about $260,000 and pairs borrowers with preapproved plans and screened builders. Another fund provides temporary housing assistance and grants of up to $250,000 to Eaton Fire rebuilders with no income caps or repayment requirements.
Lendistry has launched a pilot program, supported by Bank of America and the California Community Foundation, that combines financial guidance with construction loans and mortgage assistance. Governor Gavin Newsom also approved $100 million in state rebuilding funds, though lenders are still rolling out that program.
Outlook
While multiple public and private programs are beginning to fill parts of the gap, the shortfall remains substantial for many households. Nonprofits and local organizations continue to push for faster, larger-scale relief as survivors try to rebuild lives and communities.
Key statistics: ~ $500,000 average household shortfall; 2,000+ survey respondents; 31+ confirmed deaths; 16,000+ structures destroyed; roughly two-thirds still displaced.
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