In the wake of devastating wildfires that swept through Los Angeles last month, new data reveals a significant surge in home listings and a shift in market dynamics. As thousands of homes were lost to the fires, displaced residents are now actively seeking new housing options in nearby coastal and mountain neighborhoods. This influx of listings is not only increasing inventory but also driving up prices, particularly for larger homes.
Market Surge Amid Wildfire Displacement
Recent data from Homes.com shows that, since the wildfires began in early January, a staggering 322 neighborhoods in the Los Angeles area have experienced an increase in single-family homes for sale. In total, there has been a 25% rise, equating to roughly 1,938 additional listings. This spike in activity is most pronounced in areas popular with displaced residents, as they search for homes that can help them rebuild their lifestyles.
For example, in Manhattan Beach—a vibrant, beachfront suburb known for its ultraluxury options—the for-sale inventory has jumped by 68% since January 6. Coastal neighborhoods such as Palos Verdes Estates, Hermosa Beach, Venice, and North of Montana have similarly seen an influx of new listings, as former residents of fire-affected areas look to settle in safer, yet equally desirable, locations.
Shifts in Coastal and Mountainside Markets
The wildfire devastation has not only increased the number of listings but also altered the types of properties in demand. Data from Homes.com indicates that expensive mountainside neighborhoods east of the Palisades—such as Brentwood, Beverly Crest, and Hollywood Hills—have seen a roughly 40% increase in for-sale listings. This trend reflects a growing demand for larger homes, as many displaced families and investors seek properties with more space and enhanced features.
Local real estate agents report a palpable shift in market sentiment. “There’s a fanatic, frantic pace in the current market,” noted real estate agent Laura Berns of The Berns Team. “It’s reminiscent of the urgency we saw during the height of the COVID-19 market surge.” Michael Nourmand, president of Nourmand and Associates, described a “sweet spot” in neighborhoods between Santa Monica and Beverly Hills, where displaced buyers are converging in search of stability and upscale living.
Rising Prices for Larger Homes
One of the most striking trends is the rising demand for larger, multi-bedroom homes. Homes with at least five bedrooms have experienced a 12% increase in average listing prices—from about $3.5 million before the wildfires to approximately $3.9 million as of January 26. Although average prices in the area are skewed by exceptionally high-priced mansions, this increase is particularly significant for buyers seeking single-family residences that can accommodate growing families or provide more space for remote work and home schooling.
In neighborhoods like the Pacific Palisades, where single-family homes have long been the norm, many properties offer around 2,560 square feet on modestly sized lots. These characteristics have made them attractive to families looking for both comfort and continuity, even as the market adjusts to the aftermath of the fires.
Mixed Market Dynamics and Buyer Sentiment
While the surge in listings has certainly boosted available inventory, tight competition persists for homes meeting the specific needs of displaced buyers. Despite the increase in supply, there remain only about 2,030 for-sale listings and 840 for-lease listings in Los Angeles County for homes with five or more bedrooms, according to Homes.com data. “You have less supply, more demand,” explained Michael Nourmand, underscoring the competitive nature of this segment.
Real estate agent Joe Reichling, who specializes in neighborhoods such as Los Feliz, Silver Lake, Hollywood Hills, West Hollywood, and Hancock Park, highlighted that many of his clients are motivated by broader market conditions that started in 2024 and continue to accelerate into 2025. “There are factors beyond the disruption of the fires,” he said, “that are driving buyer behavior in this market.”
What Buyers and Sellers Should Do
For buyers, this evolving landscape means taking advantage of the increased inventory and negotiating favorable terms, especially for larger homes that offer the space and amenities displaced families now require. It also emphasizes the importance of acting quickly in competitive markets where unique properties become highly sought after.
For sellers, the current surge in listings provides an opportunity to capitalize on high demand and competitive offers, especially in desirable coastal and mountainside areas. However, sellers must remain aware of the broader market trends and price their homes strategically to appeal to buyers who are looking for both stability and long-term value.
Looking Ahead
The data clearly indicates that the wildfires have not only reshaped the physical landscape of Los Angeles but also its real estate market. With a significant influx of new listings and a growing demand for larger homes, the market is evolving rapidly. Displaced buyers are seeking to recreate their lost lifestyles, and while competition remains fierce in some segments, opportunities abound for both buyers and sellers in the post-fire recovery.
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