Investors pounce on SoCal's fire-scarred neighborhoods

"Investors have become major buyers of housing lots in the neighborhoods hardest hit by the January 2025 California wildfires, accounting for roughly 40 percent of all lots sold in the most affected ZIP codes. An analysis of county records shows that in Pacific Palisades, investors purchased 48 of 119 lots, or 40.3 percent, sold in the third quarter of 2025 compared with zero lot sales of any kind a year earlier, Redfin News reported."

"The surge in investor purchases comes as firedamaged neighborhoods face slow rebuilding timelines, insurance challenges and a glut of land listings. Redfin agents report that many Altadena residents, especially elderly homeowners and those who were underinsured, are accepting low offers because they lack the financial means to rebuild. Many homes destroyed there dated to the 1940s and 1950s, and owners have waited nearly a year for permits."

"Pacific Palisades presents a stark contrast. With average household incomes near $400,000, many displaced homeowners have purchased temporary residences often multimilliondollar homes in Santa Monica, Santa Barbara, Manhattan Beach, Orange County or San Diego while planning highend rebuilds. One buyer purchased a $3.8 million Santa Monica home while preparing to rebuild with a prominent architect; another bought a $4.7 million Pacific Palisades home after losing a Malibu property."

Investors purchased large shares of housing lots in neighborhoods hit by the January 2025 California wildfires, accounting for roughly 40 percent of lots sold in the most affected ZIP codes. Pacific Palisades saw investors buy 48 of 119 lots, Altadena 27 of 61 and Malibu 19 of 43, and around 80 percent of those lots previously had homes. Slow rebuilding timelines, insurance challenges and a glut of listings are driving investor activity. Many Altadena homeowners, especially elderly or underinsured, are accepting low offers after waiting months for permits. Wealthier displaced homeowners in Pacific Palisades are buying temporary multimillion-dollar residences while planning high-end rebuilds.

Read at therealdeal.com