Parts of California were devastated this year by wildfires. Disasters such as this
always bring rebuilding challenges, and specifically in an area as complex as California.
TCU faculty experts recently talked to TCU News about what will go into the rebuilding
efforts, how the state’s unique economy and industry move forward and how we look
at wildfires environmentally. James Hill
Director, Center for Real Estate
TCU Neeley School of Business
California is a challenging real estate market. How will the wildfires further impact
this?
In my estimation, the fires in California will have significant consequences on the
real estate market in several ways. They have already reduced housing supply in high-demand
areas, further tightening an already strained market. This will likely drive up home
prices, making affordability an even greater challenge. Many displaced homeowners
may choose to relocate rather than rebuild, while others will be forced into rental
markets, putting additional pressure on rental supply and driving up market rents.
Finally, insurance challenges add another layer of complexity, not just in California
but in other disaster-prone areas like Texas. Many insurers have pulled out of high-risk
regions or significantly raised premiums, making it more expensive to own property.
Some homeowners are struggling to secure coverage at all, which impacts both their
ability to rebuild and the willingness of future buyers to invest in these areas. Tyson Browning
Professor of Operations and Supply Chain Management
TCU Neeley School of Business
What kind of impacts will the wildfires in California have on the supply chain when
it comes to rebuilding and recovery efforts?
Key impacts on the supply chain include local shortages of building materials (especially
fire-resistant materials that could be in higher demand for rebuilding) and skilled
labor — likely causing price inflation. And the rebuilding will occur in a context
of increased insurance premiums, coupled with delays due to insurance claims backlogs,
environmental contamination issues and regulatory/permitting hurdles. Zack Hawley
Professor of Economics
AddRan College of Liberal Arts
How does the state rebuild successfully in an already complex economy?
Rebuilding after the California wildfires must focus on sound economic policies that
restore communities while increasing affordable housing. Research shows that rent
caps can reduce housing supply and investment, worsening shortages. Instead of restrictive
policies, efforts should streamline development, incentivize new construction, and
cut regulatory barriers to ensure sustainable, long-term affordability. Housing is
a fundamental need, and solutions should expand supply rather than restrict it. By
prioritizing pro-growth strategies, California can rebuild resilient communities while
ensuring accessible housing for those affected by the wildfires.Kim Owczarski
Associate Professor of Film, Television and Digital Media
Bob Schieffer College of Communication
What impact will the wildfires in California have on Hollywood and the film/TV industry?
What ramifications does this potentially have for future seasons or movies?
The fires are yet another factor affecting the level of production happening in Hollywood.
Production levels for film and TV shoots were already significantly down in L.A. due
to COVID-19 restrictions, the dual labor strikes of 2023, and the lack of tax incentives
available in the state. Perhaps the fires will help get legislators to enact more
tax breaks to attract production to the affected areas of Los Angeles. But one of
the immediate ramifications of the fires will certainly be more runaway production,
particularly for TV series, as the city and communities around it rebuild. Kristin Ferebee
Assistant Professor of Professional Practice
John V. Roach Honors College
As we look ahead, in the context of climate thinking, what makes wildfires like these
in California so difficult?
I think the primary thing that is challenging about the wildfires is that they’re
not “caused” by climate change in any clear, direct way. We think of there being an
obvious direct cause — sparking transformer, firework, cigarette, arson — which is
not the case with something like a hurricane. It’s also not just drought or heat —
it can be the changing nature of cycles, so that intense rain and intense drought
produce lots of vegetation that dries out and becomes highly flammable, for instance. This
really speaks to the way that climate change is about, well, change. The problem is:
are we going to see something like these wildfires as a single disaster, an aberration,
or recognize them as part of a new normal for Southern California?