The Wildfires Made LA’s Housing Crisis Worse. There Was a Solution Before They Ever Started.
I wish I could say we didn’t see this coming. The housing market in Los Angeles was already fragile long before devastating wildfires struck on January 7, 2025. In the wake of one of the costliest natural disasters in the nation’s history, and certainly in LA’s history, we’ve watched a worst-case scenario unfold.
The fires destroyed more than 16,000 structures across Los Angeles, displacing tens of thousands of residents overnight, leaving them scrambling to find a new place in an already impossible rental market. Prices were sky-high before the fires, and then landlords hiked rents by 15-20% despite state laws meant to prevent price gouging in times of crisis. It’s ruthless, and it forced more people into overcrowded apartments, couch-surfing, or worse—homelessness.
For many Angelenos, this was a new and terrifying experience. But for others, it was their reality long before the fires. That’s why Better Angels was founded—to end the LA homelessness epidemic. Before the wildfires, Los Angeles County already faced a deficit of 500,000 affordable homes, contributing to a significant homelessness crisis. The sudden loss of additional housing units due to the fires has further strained the market, making it even more challenging for residents to find affordable accommodations.
While rebuilding seems like the obvious solution for those who’ve lost homes, we know that as many as 40% of those impacted won’t. Why? They need and want to move on, and in our highly adaptable culture, it’s the quickest, most appealing option for those with the means to do it. But even homeowners who want to rebuild may not be able to. Insurance companies are pulling out of high-risk areas, and even those lucky enough to have coverage often find that their payouts don’t come close to covering the cost of rebuilding.
As devastating as all this is, this inventory allows us to rethink housing in LA and gives us an opportunity to be creative.
What Can We Do About It?
Long before the wildfires exacerbated the existing housing crisis, Better Angels was expanding affordable housing in LA County through the Better Angels Affordable Housing Fund by streamlining housing production, cutting costs, and expediting the investment and delivery of new housing. Smart financing and development strategies can put affordable housing within reach for thousands of Angelenos, and this approach can address the immediate shortage while contributing to the long-term resilience of housing infrastructure in Los Angeles.
For example, one of our projects is in the fire zone in Pasadena, where many families were directly impacted. The North Lake Avenue project is a rare chance to create a vibrant, inclusive, and sustainable community that reflects Pasadena’s character, while addressing its urgent housing needs. It also exemplifies Better Angels’ holistic approach to the homelessness crisis, by combining affordable housing, supportive services, and economic opportunity to shape the future of this neighborhood for decades to come.
What’s in the plan?
Housing for people displaced by the wildfires. Pasadena needs more housing. The wildfires only made things worse, displacing families who now can’t find affordable homes anywhere nearby. This project is an opportunity to help those families stay in their community instead of being priced out.
Affordable options for local residents and working families. With a mix of market-rate and affordable options, we can provide housing that works for everyone—not just the wealthiest few. More housing brings more stability. Some people worry about that, but here’s the truth: density is a benefit, not a drawback. More homes mean more customers for small businesses; more tax revenue to fund schools, parks, and public services; and more transit riders, which reduces traffic and supports a greener city. Smart, well-planned density can transform North Lake Avenue into a walkable and connected neighborhood—not just another underdeveloped corridor.
Supportive housing for our unhoused neighbors. Let’s not forget those experiencing homelessness, the heart of our mission at Better Angels. By including supportive housing, we can provide stability for people in need while making Pasadena a leader in real, compassionate solutions to the homelessness crisis. That’s not just managing homelessness, it’s actually solving it.
A new health hub that serves the whole community. Before it closed, Kaiser Permanente’s facility on this site provided essential medical services to the neighborhood. Now, Pasadena Mayor Victor Gordo is pushing for a new health hub, to bring back critical medical services and make sure everyone has access to care. A one-stop shop for health services—from primary care to mental health support—would be a game-changer for local residents. It would bring convenient, high-quality care right to the neighborhood, replacing what was lost and filling a huge gap in local services.
A dynamic retail and dining scene. Pasadena’s South Lake Avenue has grown into a thriving shopping and dining district. The North Lake Avenue project would bring some of the same energy north of the freeway, creating a vibrant retail hub that serves local residents, attracts visitors, and creates jobs. Robust housing density would support a diverse mix of businesses and invite investment from local entrepreneurs.
Hiring local businesses and workers. The project will benefit Pasadena in the development stage too. Pasadena-based companies will handle design and construction, keeping jobs and investment in the community and ensuring the neighborhood will reflect Pasadena’s unique culture and character. The development project will strengthen the local economy by keeping tax revenue, jobs, and spending right at home.
What makes this project truly special is how it integrates what we’ve learned from all of Better Angels’ initiatives to ensure that residents don’t just have a place to live—they have the support they need to thrive. The North Lake Avenue project is about so much more than providing housing. It’s about building better communities that consider every aspect of stability, from financial security to mental health to career growth. This is how we fight the housing crisis.
We’re not doing it alone. The City of Pasadena and The Urban Coalition are working with us to bring this vision to life. But the North Lake Specific Plan provides only a framework for development; the people of Pasadena will make sure it meets the community’s real needs. They showed up in force recently to make their voices heard.
This Crisis Isn’t Going Away on Its Own.
The 2025 wildfires were a wake-up call, but let’s be honest—we’ve been in crisis mode for a long time. If we don’t act boldly now, the housing shortage will worsen. That’s why Better Angels is pushing full speed ahead to create lasting change in LA’s housing landscape. Together, we can rebuild our shattered communities in a way that works for everyone.
More on this topic:
How LA wildfires are making an already tough rental market even worse —AP
After fires, Los Angeles gets moonshot moment to rebuild —Reuters
To rebuild Los Angeles, fix zoning —The Atlantic
Photo Source: Pasadena Star-News
