Where is California going to find the wood and the people to rebuild after the fires?

I'm David Brancaccio. Some welcome rain is in the forecast for Southern California this weekend,

although warnings for high winds that can fan flames remain into tomorrow.

The wildfires have killed 28 people and destroyed some 14,000 structures. Officials are

focused on housing the tens of thousands of people displaced, but for the weeks and months ahead,

marketplaces Justin Ho looks at the challenge of rebuilding at this scale. First of all, the rebuilding

effort is going to face many of the same challenges that the entire home construction market's been facing for years now.

Shortages of skilled labor and building materials, including electrical transformers, also expensive construction loans.

Even though Federal Reserve interest rates have come down, we still see lending rates for builders around 10 to 12% right now.

That's Jim Tobin, CEO of the National Association of Home Builders. He says home construction

in California comes with its own set of challenges, too. You're talking about the most expensive

market to build in the country anyway. Layers of regulations,

delays, the high prices of properties. One silver lining is that lumber prices have actually

come down in recent years, says Greg Kuda, CEO of Westline Capital Strategies. But he says the

possibility of new tariffs on Canadian lumber could push those prices back up, especially

if demand for lumber surges at the same time.

When you actually have the demand to rebuild, prices could be substantially higher a year

from now.

But there are some unique factors that could help usher along the recovery process.

Last week, California Governor Gavin Newsom signed an executive order meant to speed up the

rebuilding effort by suspending certain permitting requirements and environmental reviews.

It will be easier to get projects approved.

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