\nReal estate investors are buying roughly 40% of the land selling in areas impacted by the January 2025 California wildfires, according to a new report<\/a> from Redfin<\/a>, the real estate brokerage powered by Rocket.<\/p>\n
\nIn the 90272<\/a> zip code (Pacific Palisades), investors purchased 48 of the 119 lots (40.3%) that sold in the third quarter. That compares with zero lot purchases a year earlier\u2014from both investors and other buyers.<\/p>\n \nIn the 91001<\/a> zip code (Altadena), investors bought 27 of the 61 lots (44.3%) that sold. That also compares with zero lot purchases a year earlier from investors and other buyers.<\/p>\n \nAnd in the 90265<\/a> zip code (Malibu), investors bought 19 of the 43 lots that sold (44.2%). That\u2019s more than double the 21.4% share of a year earlier.<\/p>\n \n\u201cIn Altadena, there\u2019s a real push around the idea that the community is not for sale,\u201d said Redfin Premier<\/a> real estate agent Sylva Khayalian<\/a>. \u201cPeople who plan to stay are encouraging others not to sell because of how much it could change the neighborhood\u2014but for some residents, selling is the only option that makes financial sense.\u201d<\/p>\n \nA lot of the homes that burned down in Altadena were built in the 1940s or 1950s. Khayalian said many investors are making lowball offers for the lots, with plans to flip the land into new homes. Some owners are rejecting these offers, but others are signing on the dotted line because they\u2019re desperate to sell, she said. A lot of the residents who plan to sell are elderly or were underinsured when their home burned down, meaning they don\u2019t have the money to rebuild. The rebuilding process has been painstaking for many residents, who have been waiting nearly a year for permits, but Khayalian said she has seen more builders break ground in the past few weeks. Many homeowners who lost their homes are living in rentals nearby, while others have left town.<\/p>\n \nIn Pacific Palisades\u2014a much more affluent neighborhood\u2014some people whose homes burned down have purchased another home to live in while they decide whether to rebuild, said Redfin Premier real estate agent Justin Vold<\/a>. One of Vold\u2019s clients bought a $3.75 million home near Santa Monica, and plans to work with a renowned architect to rebuild their house that burned in Pacific Palisades. Another client whose Malibu home was destroyed by the fires recently purchased a $4.68 million Pacific Palisades house, which didn\u2019t burn in the fires but faces landslide risk.<\/p>\n \nVold expects to see more buyers enter the market as insurance stops covering temporary rentals for people whose homes burned down and as more residents give up on the idea of rebuilding. If more people decide against rebuilding, the pileup of vacant lots on the market will grow.<\/p>\n There\u2019s a Pileup of Land for Sale in the Areas Hit by the Fires<\/b><\/p>\n \nIt\u2019s not uncommon for investors to buy and develop land after natural disasters. And while investors have been active in areas impacted by the Los Angeles wildfires, Redfin agents say there\u2019s so much land for sale that much of it is sitting on the market unsold.<\/p>\n \nIn all three zip codes Redfin analyzed, there are far more listings\u2014of both vacant lots and single-family homes\u2014than sales.<\/p>\n \nIn Pacific Palisades, there were 309 lot listings during the three months ending November 30, up from just seven a year earlier. In Altadena, lot listings jumped to 225 from two over the same period, and in Malibu, they rose to 214 from 125.<\/p>\n \n\u201cThere are so many lots sitting on the market that sellers are starting to cut prices to attract offers,\u201d Khayalian said. \u201cMany of the lots that are selling in Altadena are in the $500,000 to $600,000 range. If there was still a home on them, they might sell for $1 million or more.\u201d<\/p>\n \nThe typical lot that sold in Altadena during the three months ending November 30 went for $510,000, while the typical lot that sold in Pacific Palisades went for $1.6 million. In Malibu, the typical lot that sold went for $1.3 million.<\/p>\n \nSome properties in areas impacted by the fires have been hard to value because there\u2019s not much turnover and the surrounding infrastructure has been destroyed, noted Redfin Premier agent Carlos Castillo<\/a>.<\/p>\n Housing-Market Summary for Areas Impacted by Fires: Three Months Ending Nov. 30<\/b><\/p>\n \n\u00a0<\/p>\n<\/td>\n Three months ending Nov. 30, 2025<\/b><\/p>\n<\/td>\n Three months ending Nov. 30, 2024<\/b><\/p>\n<\/td>\n<\/tr>\n Pacific Palisades (90272)<\/b><\/p>\n<\/td>\n<\/tr>\n \nVacant lots for sale<\/p>\n<\/td>\n \n309<\/p>\n<\/td>\n \n7<\/p>\n<\/td>\n<\/tr>\n \nVacant lots sold<\/p>\n<\/td>\n \n107<\/p>\n<\/td>\n \n0<\/p>\n<\/td>\n<\/tr>\n \nSingle-family homes for sale<\/p>\n<\/td>\n \n118<\/p>\n<\/td>\n \n140<\/p>\n<\/td>\n<\/tr>\n \nSingle-family homes sold<\/p>\n<\/td>\n \n31<\/p>\n<\/td>\n \n45<\/p>\n<\/td>\n<\/tr>\n Altadena (91001)<\/b><\/p>\n<\/td>\n<\/tr>\n \nVacant lots for sale<\/p>\n<\/td>\n \n225<\/p>\n<\/td>\n \n2<\/p>\n<\/td>\n<\/tr>\n \nVacant lots sold<\/p>\n<\/td>\n \n80<\/p>\n<\/td>\n \n0<\/p>\n<\/td>\n<\/tr>\n \nSingle-family homes for sale<\/p>\n<\/td>\n \n124<\/p>\n<\/td>\n \n122<\/p>\n<\/td>\n<\/tr>\n \nSingle-family homes sold<\/p>\n<\/td>\n \n58<\/p>\n<\/td>\n \n67<\/p>\n<\/td>\n<\/tr>\n Malibu (90265)<\/b><\/p>\n<\/td>\n<\/tr>\n \nVacant lots for sale<\/p>\n<\/td>\n \n214<\/p>\n<\/td>\n \n125<\/p>\n<\/td>\n<\/tr>\n \nVacant lots sold<\/p>\n<\/td>\n \n37<\/p>\n<\/td>\n \n12<\/p>\n<\/td>\n<\/tr>\n \nSingle-family homes for sale<\/p>\n<\/td>\n \n283<\/p>\n<\/td>\n \n279<\/p>\n<\/td>\n<\/tr>\n \nSingle-family homes sold<\/p>\n<\/td>\n \n37<\/p>\n<\/td>\n \n33<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Home Sales Tick Up in the Palisades and Altadena But Remain Below Pre-Fire Levels<\/b><\/p>\n \nThere were 31 sales<\/i> of single-family homes in Pacific Palisades during the three months ending November 30, up from a record low of just six in the three-month period after the fires started, but down from 45 a year earlier.<\/p>\n \nIn Altadena, there were 58 sales of single-family homes, up from a record low 26 in the three-month period after the fires started, but down from 67 a year earlier.<\/p>\n \nThere are far fewer sales of single-family homes than there are sales of vacant lots in Pacific Palisades and Altadena\u2014a reversal from before the fires.<\/p>\n \nIn Pacific Palisades, there were 107 lot sales during the three months ending November 30, up from zero a year earlier. In Altadena, there were 80, also up from zero a year earlier. In Malibu, lot sales rose to 37 from 12.<\/p>\n \n\u201cThe homes for sale that didn\u2019t burn are only attracting offers if they\u2019re priced reasonably and the owner has remediated ash and smoke damage,\u201d Khayalian said. \u201cThe most important thing someone looking to buy in this area can do is figure out if they can afford insurance. Mortgage lenders in California require homebuyers to have fire coverage, and premiums have gone up by 35% to 50% since the fires.\u201d<\/p>\n \nOne wall of Khayalian\u2019s house burned in the fires, but fortunately members of the community put out the flames with pool water before they could spread. Still, the cost to clean up the damage has been in the hundreds of thousands of dollars. A remediation company cleaned up the ash and smoke residue, which cost nearly $70,000 and was covered by Khayalian\u2019s insurance. But there was also lead exposure due to the fires, which cost $160,000 to clean up\u2014an expense she\u2019s still fighting to get her insurer to cover. The wall that burned cost $20,000 to repair, and there was nearly $30,000 of landscaping work that needed to be done because there was heavy rain after the fires, which created two inches of mud.<\/p>\n \n\u201cThe cost of cleaning up smoke and ash damage can be so exorbitant that some homeowners are morbidly joking about how it might be easier if their house had just burned down.\u201d<\/p>\n \nTo view the full report, including charts and methodology, please visit: https:\/\/www.redfin.com\/news\/los-angeles-wildfires-anniversary<\/a><\/p>\n About Redfin<\/b><\/p>\n \nRedfin is a technology-driven real estate company with the country’s most-visited real estate brokerage website. As part of Rocket Companies (NYSE: RKT), Redfin is creating an integrated homeownership platform from search to close to make the dream of homeownership more affordable and accessible for everyone. Redfin\u2019s clients can see homes first with on-demand tours, easily apply for a home loan with Rocket Mortgage, and save thousands in fees while working with a top local agent.<\/p>\n \nYou can find more information about Redfin and get the latest housing market data and research at https:\/\/www.redfin.com\/news<\/a>. For more information about Rocket Companies, visit https:\/\/www.rocketcompanies.com<\/a>.<\/p>\n View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20251230482895\/en\/<\/a><\/span><\/p>\n Contact Redfin Journalist Services: KEYWORDS:<\/b> California Washington United States North America<\/p>\n INDUSTRY KEYWORDS:<\/b> Professional Services Data Analytics Technology Residential Building & Real Estate Finance Construction & Property Internet<\/p>\n\n
\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n <\/p>\n
\n<\/b>
Kenneth Applewhaite
\n
press@redfin.com<\/a><\/p>\n
![\"Logo\"](\"https:\/\/mms.businesswire.com\/media\/20251230482895\/en\/2512757\/3\/Redfin_powered_by_Rocket.jpg\")
<\/td>\n<\/tr>\n