"Rebuilding has been slower than anyone had hoped, said Alan Hearty, who leads the firm's Century City litigation department. It's not because of any one failure. Insurance, regulation and construction simply were not aligned for a disaster of this magnitude. The fires, which broke out across multiple parts of Los Angeles, forced evacuations and destroyed thousands of homes. Hearty recalled watching the initial plume of smoke from the Palisades fire from his office window."
"I think these investors are probably intending to develop homes, but it may be a slow process, she said. There's this coordination problem when building back where, if you wait longer to rebuild, then you may be able to sell again for a higher price, because once the amenities are rebuilt, the neighborhood is more revitalized and people will be more interested in moving back."
Rebuilding after the Palisades and Eaton fires across Los Angeles has progressed slowly. Thousands of homes were destroyed and evacuations occurred. Only about a dozen homes in the Palisades have been rebuilt so far, while hundreds of permits remain pending and full neighborhood restoration could take years. Misaligned insurance, regulation, and construction processes hinder recovery. About 40% of damaged lots in the area are being purchased by investors who may redevelop slowly due to coordination and market-timing considerations. Infrastructure changes, including burying power lines and upgrading water and sewer systems, add time and high costs. Insurance and insurability problems affect a substantial share of policyholders.
Read at www.housingwire.com
Unable to calculate read time
Collection
[
|
...
]