The Intelligence from The Economist In the line of fires: LA’s ashen suburbs one year on
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Jan 7, 2026 
Erin Braun, West Coast correspondent for The Economist, shares her firsthand insights on the aftermath of the Los Angeles wildfires that struck a year ago. She discusses the stark inequality in rebuilding efforts, with wealthier neighborhoods bouncing back faster due to insurance disparities. Braun highlights the ongoing legal battles surrounding utility companies and the emotional toll on displaced families. She also offers a glimmer of hope for reconstruction timelines, as communities aim to return home by next Christmas.
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Permits Signal Early Rebuilding
- Permitting for rebuilding progressed faster than feared, with about 15% of destroyed buildings approved by December.
- A construction surge is expected after winter rains, signaling localized recovery momentum.
Wealth Shapes Rebuilding Options
- Wealthier areas like Pacific Palisades can self-fund rebuilds while middle-class Altadena residents face insurance gaps.
- Insurance shortfalls push some homeowners to sell, creating community tension over development.
Policy Choices Worsened Insurance Risk
- California suppressed home-insurance rates since 1988, encouraging moves into fire-prone zones and destabilizing the market.
- The FAIR plan has swelled, and short-term fixes like a $1bn charge to policyholders risk being insufficient.