They will move out when they can’t insure their properties anymore. [1] Note the refusal to cover properties isn’t a blanket withdrawal; I got a call from State Farm just last week - but I live in a major metro.
[1] https://abcnews.go.com/US/wireStory/california-insurance-mar...
Once this is accomplished (as ugly as it might be for the residents) then you can possibly do some forest management and fire control.
This same thing is playing out in FL, but over there the insurance commission isn't as stringent so insurers are just flat out not paying claims.
Suppose you can't get insurance and you can't get a mortgage without insurance. The house still exists. Its value will crash. But having crashed, now someone can afford to buy it without a loan. Meanwhile there is still a massive housing shortage, so somebody will.
And that's the thing that caused this, and the only way out of it. You have to build enough housing in the areas that aren't in the direct path of wildfires that nobody is being forced by those high prices into the housing that is.
Meanwhile CA also recently revamped how local regulators are allowed to regulate things like more duplexes and multiplexes in all residential areas.
I'd like to know more about this. Do you have a reference?
But also the most beautiful state, if you get off on that sort of thing.