Cotality: Wildfire risk threatens $1.4T in properties across western states
More than 2.5 million properties across the 10 most exposed western states face a moderate or greater risk of wildfire damage, representing nearly $1.4 trillion in reconstruction cost value, according to Cotality’s 2026 Wildfire Risk Report.
The latest report from Cotality highlights a pressing concern for the construction industry in the western United States. With over 2.5 million properties at moderate or greater risk of wildfire damage, the potential financial exposure is staggering, reaching nearly $1.4 trillion in reconstruction costs. This is a critical issue for builders, developers, and property owners, as it underscores the need for proactive measures to mitigate wildfire risk and ensure the resilience of properties in high-risk areas.
The western states most exposed to wildfire risk are likely to see increased scrutiny from insurers, regulators, and investors, which could impact the development and construction of new projects. As the industry continues to grapple with the challenges of climate change, it's clear that wildfire risk will be a major consideration in the years to come. Builders and developers will need to prioritize fire-resistant construction methods, vegetation management, and emergency preparedness to minimize risk and protect their investments.
Looking ahead, it's essential to watch how policymakers and industry leaders respond to the growing threat of wildfires. Expect to see increased demand for fire-resilient building materials, more stringent building codes, and innovative solutions for mitigating wildfire risk. The construction industry will need to adapt to these changing conditions, and staying informed about the latest developments in wildfire risk management will be crucial for companies looking to navigate this complex and evolving landscape.
Originally reported by housingwire.com. ConstructionNews adds analysis for real estate & property readers.