[An editorial note:]

The fires raging across Los Angeles feel like a grim prophecy fulfilled.

What was once unthinkable — a sprawling metropolis facing apocalyptic destruction — is now, sadly, a recurring chapter in California’s story. These blazes, fueled by relentless Santa Ana winds and tinder-dry conditions, have already destroyed over 2,000 buildings, claimed at least five lives, and displaced thousands of families. Economic losses could eclipse $50 billion, but even those staggering numbers fail to capture the heartbreak and upheaval.

For those of us connected to housing, residential development, and the broader homebuilding community, these fires strike at the core of our work and our purpose. Contractors, tradespeople, suppliers, and management teams — many of whom live and work in the affected areas—are navigating devastation on both professional and personal fronts. Once again, the same homes we build to provide sanctuary and stability have been reduced to ash.

This is not just a crisis of the moment. It's an again, and again, and again reality.

It’s a reckoning. Climate shocks are no longer isolated events; they are a relentless drumbeat, forcing us to confront hard truths about how we plan, build, and protect homes and communities.

The wildfires are speaking to us — screaming, really. And the message is clear: business as usual is no longer an option.

Protecting Our People

Before anything else, we must take care of our own. This industry is built on people— teams in the field, family members at home, and the vast ecosystem of vendors and partners who make our work possible. Their safety and well-being come first.

However, we must also consider the broader human impact. As the flames consume homes and neighborhoods, displaced families are scrambling for shelter in an already overburdened housing market. Rents are surging, temporary housing is scarce, and economic stress is mounting. For many, recovery will take years — if it ever comes at all.

This is where our collective responsibility as an industry community begins. We are builders, yes, but we are also stewards of the places people call home. If we do not rise to the resilience challenge, we risk failing the communities we claim to serve.

Adapting to a New Reality

Wildfires — and the havoc they wreak — are not going away. If anything, they’re accelerating. The severity, frequency, and unpredictability of climate-driven disasters are reshaping the very landscape of our work.

Insurance is one of the clearest pressure points. Like several other U.S. geographies, California’s home insurance market was already teetering before this latest catastrophe. Now, traditional insurers are retreating, leaving homeowners to rely on last-resort plans that offer bare-bones coverage at skyrocketing premiums. Builders and developers feel this strain firsthand, as insurance availability — or the lack thereof —directly impacts where and how communities are planned.

The rules are changing. High-risk areas require preemptive planning, such as mapping fire-prone zones, clearing brush, and designing developments with resiliency at their core. Builders must also account for the growing likelihood of higher insurance rates and stricter underwriting requirements. These realities are no longer exceptions; they are the new normal.

A Deeper Challenge: Housing Affordability Under Siege

If we’re honest, the insurance crisis is just one layer of a much bigger problem. Housing affordability — already stretched beyond its limits — is being battered by rising premiums, construction costs, and climate risks.

Wildfires push rents higher as displaced families compete for limited housing. Rebuilt homes tend to be larger and more expensive, pricing out existing residents. In areas repeatedly hit by disasters, long-term demand slows, eroding the stability of local markets. These forces are converging to threaten the foundation of affordable housing in America.

Unfortunately, natural disasters tend to put a lot of inflationary pressures on the housing market and the local economy,” notes Selma Hepp, Chief Economist at CoreLogic. “This currently comes at a very inopportune time given the Fed’s struggle with reeling in inflation. Long-term impacts on local markets are driven by the persistency and intensity of natural disasters, as well as proximity to jobs and urban areas in smaller housing markets.”

Dr. Hepp’s insight underscores a fundamental reality: disasters don’t just destroy homes — they fracture the delicate balance of affordability, demand, and economic stability that housing markets rely on. Rents surge. Mortgage delinquencies rise. Affordability, already fragile, collapses under the weight of compounding pressures.

This is the tightrope we must walk: balancing the need for safer, more resilient homes with the imperative to keep housing within reach. It’s not an easy balance, but it is a necessary one. And it starts with recognizing that resilience and affordability are not opposing goals—they are two sides of the same coin.

Why This Matters: A Call to Leadership

As an industry, we’ve talked about resilience. We’ve acknowledged the challenges. But talking and acknowledging are not enough anymore. The wildfires and the crises they illuminate demand action. They demand leadership.

Leadership means accepting that our work is not just about building homes — it’s about building futures. It means making hard choices: prioritizing safety and sustainability, even when it challenges short-term profitability. It means collaborating across sectors — builders, insurers, policymakers, and communities— to develop solutions that protect physical structures and the people who live in them.

Leadership means considering long-term impact in every decision — every plot of land, every material chosen, every policy implemented. Will this design withstand the next fire? Will this community remain insurable? Will these homes be accessible to the families who need them most?

These are the questions we must ask ourselves, every single day. Because the stakes are too high to do otherwise.

A Closing Thought

This moment demands more of us. More foresight. More creativity. More courage. The wildfires are not just a crisis; they are a wake-up call.

If we fail to adapt — if we cling to the ways we’ve always done things — we will find ourselves perpetually rebuilding in the ashes of the last disaster. But if we listen to what this moment is telling us and embrace the hard truths and the opportunities they bring, we have a chance to create something better.

We have a chance to build homes that endure. Communities that thrive. Futures that inspire.

This is our responsibility. This is our purpose. When to begin?