A new $1 billion insurance bailout for California’s homeowners is expected to increase the financial strain on an already struggling housing market. The plan, known as the FAIR Plan, assesses costs statewide and will likely spread the burden across the state. This comes as the LA wildfires are expected to add another layer of expense for households, further exacerbating the issue of chronic undersupply in California’s housing market, where a condo can cost upwards of $800,000 and families drive long distances to find affordable homes.
Source: https://www.bloomberg.com/news/articles/2025-02-13/california-wildfire-insurance-losses-deepen-housing-market-strains