Burned Lots in Altadena and Pacific Palisades Hit the Market: What It Means for Real Estate
Two months after the devastating Palisades and Eaton wildfires, which destroyed over 12,000 homes, a surge of burned lots is hitting the market in Altadena and Pacific Palisades. Homeowners who lack the resources, time, or desire to rebuild are choosing to sell instead, leading to increased developer interest in these fire-ravaged communities.
Real estate agents in the area say the number of listings has skyrocketed in the past month, with 49 burned lots for sale in Pacific Palisades and 32 in Altadena, according to Zillow’s latest data.
Why Are Homeowners Selling Burned Lots Instead of Rebuilding?
Homeowners affected by the fires face tough decisions about whether to rebuild or sell their properties. Many are choosing to sell due to financial, emotional, or logistical challenges.
🏡 Financial Constraints – Many homeowners, especially those who were underinsured, cannot afford the high cost of rebuilding.
👴 Age & Lifestyle – Older residents are choosing not to spend their remaining years dealing with the stress and delays of post-fire reconstruction.
🏢 Investment Properties – Some landlords who previously rented out homes are finding the hassle of rebuilding isn’t worth the long-term return.
⏳ Speed & Simplicity – Selling a burned lot is faster and easier than going through the years-long process of securing permits, hiring contractors, and financing reconstruction.
“Building a house is one of the most complex and highly regulated activities you possibly can engage in,” said Brock Harris, a Keller Williams agent who sold one of the first burned lots in Altadena to a developer.
Who’s Buying These Lots? Mostly Developers
Real estate agents report that most buyers are developers who see an opportunity to build and sell high-end homes in desirable neighborhoods.
📈 Developers recognize the long-term value of these lots and believe there’s money to be made.
📈 Lot prices in Altadena have sold for 30-35% below pre-fire values, with recent sales ranging from $500,000 to $600,000.
📈 In Pacific Palisades, land prices are higher, and developers are quickly moving in to capitalize on prime real estate.
Real estate agent Lisa Haussler, who lost her own home in the fires, is advising homeowners to wait before selling.
💬 “Developers are buying these lots because they believe there’s money to be made,” she said. “For our clients, we are really counseling to take a beat and let’s see what happens.”
Her argument? As cleanup progresses and demand grows, homeowners may be able to sell for more in the coming months.
Will This Lead to Gentrification? Concerns for Altadena’s Middle-Class & Black Homeowners
🔥 Altadena has seen significant gentrification in recent years, with home prices soaring before the fires. Now, there are concerns that the fires will accelerate the displacement of long-time residents—especially middle-class and Black homeowners.
Research shows that after major disasters, wealthier individuals move in, driving up home prices.
🏚️ In Paradise, California, where the 2018 Camp Fire wiped out most of the town, income levels, home values, and education levels all increased post-fire.
🏚️ In Maui, the 2023 Lahaina wildfires resulted in wealthier buyers purchasing land from longtime local families who couldn’t afford to rebuild.
💬 “Will we, as a Black community, be wiped out?” asks Heavenly Hughes, founder of My Tribe Rise, a Black mutual aid organization in Altadena.
She and other community advocates worry that developers will replace affordable single-family homes with luxury properties, pushing longtime residents out.
Should Fire Victims Sell or Hold? A Real Estate Dilemma
For homeowners facing this tough choice, here are the main considerations:
✔ Sell Now?
- If rebuilding is financially impossible, selling now might be the best option.
- The market is already being flooded with burned lots, meaning prices could drop if inventory continues to rise.
- Selling now eliminates the emotional stress and logistical nightmare of rebuilding.
✔ Hold & Rebuild?
- If possible, waiting a few months could lead to higher land values once cleanup efforts are complete.
- Financial assistance programs and nonprofit rebuilding efforts may help some homeowners afford reconstruction.
- Those who want to stay in the community should explore funding options to help rebuild rather than sell.
💬 “We want to make sure fire victims know their options,” Hughes said. “We’re trying to match people who really need to sell with others from Altadena who want to buy—so they can keep these homes in the community.”
Real Estate Outlook for Burned Lots in Altadena & Pacific Palisades
📈 Prices for vacant land could rise once the initial flood of listings slows down.
📈 Developers will likely rebuild larger, more expensive homes, shifting neighborhood demographics.
📈 Homeowners who can afford to wait may see better offers in the coming months.
📈 Rebuilding efforts will take years, and those who sell now will likely be replaced by wealthier buyers.
🔥 For now, homeowners who lost their properties need to be strategic—whether they rebuild or sell—to protect their financial future.
📞 Contact Abdo Pierre Faissal for unparalleled real estate service.
📧 [email protected] | 📲 310-620-1038