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Fire Economics

Financial impacts of Wildfires

2023-06-14

Nova Scotia : Wildfires' Hidden Impact and Long-Term Fallout

Skyrocketing rents, limited availability, prolonged rebuilding timelines ( to name a few ) compound the challenges for victims of devastating wildfires.

Nova Scotia, Canada – The devastating outbreak of wildfires in Nova Scotia has left a path of destruction, rendering families homeless and uncertain about their future. As flames engulfed their properties, victims now face the daunting task of navigating the long-term financial consequences of their losses. The skyrocketing rents, scarcity of available housing, and extended reconstruction timelines have added to the burden faced by those affected.

One resident, Brianne Carlson, vividly recalls the heart-wrenching moment she realized her home would succumb to the approaching wildfire. Alongside her husband and two-year-old son, Carlson was forced to evacuate, helplessly watching as her beloved house fell victim to the inferno. Their family is one of 150 households that lost their homes in the Upper Tantallon area, while an additional 60 homes were destroyed in Shelburne County.

For the displaced families, finding alternative housing has become an urgent priority. However, they are confronted with the harsh reality of a rental market experiencing a surge in prices and a scarcity of available properties. Halifax, the most heavily impacted city, has witnessed an alarming 9.3% year-over-year increase in residential rent for two-bedroom units, making it the Canadian city with the highest spike in rental prices.


Furthermore, Halifax's vacancy rate remains at an alarmingly low one percent, the second lowest in the country.

Carlson, like many others, has experienced the challenges firsthand while searching for suitable housing. The limited availability of rentals, coupled with exorbitant prices, has forced families to consider downsizing to smaller accommodations at significantly higher costs compared to their previous mortgages. The financial strain intensifies as families continue to bear their mortgage payments, even though their homes have been reduced to rubble. While insurance companies cover these payments up to a certain limit, there is growing concern that these funds will be exhausted before the rebuilding process can begin.

The path to recovery is further hampered by protracted timelines for reconstruction. Due to labor and supply shortages, industry experts predict that it may take up to two years to rebuild the affected homes. This delay is reminiscent of previous fire events, such as Fort McMurray and Slave Lake, which faced similar challenges in reconstruction. The uncertain nature of how many contractors will emerge adds to the anxiety faced by the affected homeowners.

Ben McDonald, another victim of the wildfire, emphasizes the emotional exhaustion and stress that families endure while managing the priorities of rebuilding and finding temporary accommodations. Despite the generous offers of temporary housing from the community, long-term stability for their children remains a top concern. Many available rentals are not pet-friendly and come with exorbitant monthly rents, making it difficult for families to maintain a sense of stability.


The outpouring of support from the community has been heartwarming, but the mismatch between available housing options and the needs of the affected families persists. The provincial government has established an outreach point through 211 Nova Scotia to provide information on short- and long-term accommodations. However, the limited options include hotel rooms, university dormitories, and rental housing, leaving families searching for more suitable and stable alternatives.

As the province grapples with ongoing wildfires and the widespread destruction they cause, it is evident that the financial toll on affected families is immeasurable. Insurance providers play a vital role in supporting homeowners, as standard policies cover damages caused by fire and provide additional living expenses coverage during mass evacuations. However, the intricacies of the claims process, compiling lists of lost belongings, and negotiating fair settlements add further emotional and physical strain to the victims.


While the road to recovery may be long and arduous, the affected families remain resilient, determined to rebuild their lives despite the challenges they face. The continued support from the community and government assistance will be crucial in helping them navigate these trying times and find solace in the midst of their losses.

As wildfires continue to threaten homes and businesses across Nova Scotia, it is imperative that preventive measures and resources are enhanced to mitigate future incidents and ensure the safety and well-being of all residents.

Disclaimer: The information provided in this news article is based on available reports and interviews with affected individuals and experts. The situation may evolve, and further updates may be necessary.

Related articles

https://www.mtv.com.lb/en/news/politics/1366294/thousands-evacuate-as-nova-scotia-fights-wildfires

https://www.cbc.ca/news/canada/nova-scotia/displaced-residents-struggle-to-find-rentals-wildfires-1.6869678

https://www.cbc.ca/news/canada/nova-scotia/homeowners-wildfire-insurance-claims-1.6859609


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