Report by the San Francisco Fed shows small increase in premiums for properties further away from the sites of recent fires
3 min
Wildfires in California have grown more frequent and more catastrophic in recent years, and that’s beginning to reflect in home values, according to a report by the San Francisco Fed released Monday.
The effect on home values has grown over time, and does not appear to be offset by access to insurance. However, “being farther from past fires is associated with a boost in home value of about 2% for homes of average value,” the report said.
In the decade between 2010 and 2020, wildfires lashed 715,000 acres per year on average in California, 81% more than the 1990s. At the same time, the fires destroyed more than 10 times as many structures, with over 4,000 per year damaged by fire in the 2010s, compared with 355 in the 1990s, according to data from the United States Department of Agriculture cited by the report.
That was due in part to a number of particularly large and destructive fires in 2017 and 2018, such as the Camp and Tubbs fires, as well the number of homes built in areas vulnerable to wildfires, per the USDA account.
The Camp fire in 2018 was the most damaging in California by a wide margin, destroying over 18,000 structures, though it wasn’t even in the top 20 of the state’s largest fires by acreage. The Mendocino Complex fire earlier that same year was the largest ever at the time, in terms of area, but has since been eclipsed by even larger fires in 2020 and 2021.
As the threat of wildfires becomes more prevalent, the downward effect on home values has increased. The study compared how wildfires impacted home values before and after 2017, and found that in the latter period studied—from 2018 and 2021—homes farther from a recent wildfire earned a premium of roughly $15,000 to $20,000 over similar homes, about $10,000 more than prior to 2017.
The effect was especially pronounced in the mountainous areas around Los Angeles and the Sierra Nevada mountains, since they were closer to where wildfires burned, per the report.
The study also checked whether insurance was enough to offset the hit to values, but found its effect negligible. That was true for both public and private insurance options, even though private options provide broader coverage than the state’s FAIR Plan, which acts as an insurer of last resort and provides coverage for the structure only, not its contents or other types of damages covered by typical homeowners insurance.
“While having insurance can help mitigate some of the costs associated with fire episodes, our results suggest that insurance does little to improve the adverse effects on property values,” the report said.
While wildfires affect homes across the spectrum of values, many luxury homes in California tend to be located in areas particularly vulnerable to the threat of fire.
“From my experience, the high-end homes tend to be up in the hills,” said Ari Weintrub, a real estate agent with Sotheby’s in Los Angeles. “It’s up and removed from down below.”
That puts them in exposed, vegetated areas where brush or forest fires are a hazard, he said.
While the effect of wildfire risk on home values is minimal for now, it could grow over time, the report warns. “This pattern may become stronger in years to come if residential construction continues to expand into areas with higher fire risk and if trends in wildfire severity continue.”
Copyright 2020, Dow Jones & Company, Inc. All Rights Reserved Worldwide. LEARN MORE
Three completed developments bring a quieter, more thoughtful style of luxury living to Mosman, Neutral Bay and Crows Nest.
From the shacks of yesterday to the sculptural sanctuaries of today, Australia’s coastal architecture has matured into a global benchmark for design.
A&K Sanctuary’s newest Nile vessel, Nile Seray, will launch in October 2026 as Egypt enters a new era of global tourism
2 min
A new luxury riverboat set to sail the Nile from late 2026 has opened for bookings, as Egypt experiences its biggest surge in international tourism in more than a decade following the opening of the Grand Egyptian Museum.
Nile Seray, the latest vessel from A&K Sanctuary, will launch in October and operate four-night voyages between Aswan and Luxor.
The boat will accommodate just 64 guests across 32 suites, placing it firmly at the premium end of the fast-expanding Nile cruising market.
The launch coincides with the opening of the Grand Egyptian Museum in November 2025, a project more than 20 years in the making.
Located near the Giza pyramids, the museum spans more than 480,000 square metres and is now the largest archaeological museum in the world.
It houses more than 100,000 artefacts, including, for the first time ever, the complete collection of King Tutankhamun’s treasures displayed together in one place.
The museum’s opening has been widely credited with transforming global interest in Egypt, driving record visitor numbers and sparking a wave of new hotel openings, aviation capacity and high-end travel investment across the country.
Interior renderings released this week show Nile Seray adopting a contemporary design approach that blends modern lines with heritage references.
The 32 suites feature floor-to-ceiling windows overlooking the Nile, with natural materials and colour palettes drawing from Egypt’s desert landscape.
Two onboard restaurants open onto deck spaces, while the top deck includes a swimming pool and shaded daybeds designed for daytime cruising and sunset views.
Each voyage will include guided access to key archaeological sites on the West Bank, including the tombs of Seti I and Ramses VI, along with private openings of the tombs of King Tutankhamun and Amenhotep III. Excursions are led by specialist Egyptologists, with daily touring built into the itinerary.
With only 64 guests onboard, the vessel is aimed at travellers seeking a more intimate alternative to the larger Nile cruise ships that dominate the route during peak season.
Luxury hotel availability across Egypt remains tight during busy periods, particularly following the museum’s opening.
Nile Seray becomes the fifth vessel in A&K Sanctuary’s Nile fleet, joining the Nile Adventurer, Sun Boat III, Sun Boat IV and Zein Nile Chateau. A sister ship is also scheduled for launch in 2028.
Voyages include visits to the temples of Luxor, Karnak and Aswan, felucca sailing around Elephantine Island, Egyptian cooking demonstrations and traditional entertainment. All meals, excursions and onboard activities are included.
Each sailing will also contribute to A&K Philanthropy programs in Egypt, including long-running partnerships in Luxor and Aswan focused on youth education and cardiac care.
