I agree with Drew. There were many high value homes lost in that area and those high net worth families may elect to simply repurchase elsewhere (but remain local) with the actual cash value settlement of their insurance policy. This may be less stressful than going through a lengthy rebuild effort.

I expected this sort of micro economics after this fire. I beleive rents have already spiked locally.

I also think many agree that this sector of the market has been less affected by the housing downturn as well.