A Los Angeles realtor, Josh Altman, believes that as many as 70% of Pacific Palisades residents may never return to rebuild their homes. The community was left devastated by unprecedented wildfires, which have scorched over 50,000 acres, claimed 28 lives, and destroyed over 16,000 structures since January 7.
Altman, a former Million Dollar Listing real estate agent, suggests that the cost of rebuilding is simply too high for many homeowners. “It’s not going to be feasible for many,” he said, citing the high cost of construction, outdated insurance coverage, and a shrinking insurance market in California.
The realtor believes that the rebuilding process will be slow and challenging, with many former homeowners struggling to afford the costs. He notes that the cost of building a home in areas like the Palisades and Malibu can be as high as $1,000 per square foot, making it difficult for many to rebuild. Additionally, the construction process is complicated by the bureaucratic red tape in California, with permits and approvals taking months or even years to obtain.
Altman also predicts that the state’s notorious slow construction process will hinder the rebuilding efforts. “The recipe for success is cutting the red tape,” he said. “Building a house in California is wrapped in so much bureaucracy. It can take a year just to get permits, and if you’re near the coast, the Coastal Commission could add another two years.”
The realtor also recommends repealing specific regulations and taxes, such as the mansion tax and wildlife ordinances, to help facilitate the rebuilding process. “Get rid of it for all the people who lost their houses,” he said. “That’s how we’ll get back to being a strong Los Angeles.”
The devastating impact of the fires has led to a national emergency declaration by President Trump, with estimates suggesting the financial toll will be around $50 billion, far exceeding previous disasters in the region. California Governor Gavin Newsom has also approved a $2.5 billion relief package, but Altman believes it will not be enough to overcome the challenges of rebuilding.
