Nearly one year after devastating wildfires tore through Los Angeles County, real estate investors are purchasing roughly 40% of properties selling in the hardest-hit areas, according to a new report from Redfin.
In Pacific Palisades' 90272 zip code, investors bought 48 of 119 lots—or 40.3%—that sold in the third quarter, compared to zero lot purchases by anyone the previous year. Altadena saw similar patterns, with investors acquiring 27 of 61 lots sold (44.3%), while Malibu investors purchased 19 of 43 lots (44.2%)—more than double the 21.4% share from a year earlier.
"In Altadena, there's a real push around the idea that the community is not for sale," said Redfin Premier agent Sylva Khayalian. "People who plan to stay are encouraging others not to sell because of how much it could change the neighborhood—but for some residents, selling is the only option that makes financial sense."
Many investors are making lowball offers with plans to flip the land into new homes, Khayalian said. Some owners reject these offers, but others are signing on because they're desperate to sell. Many who plan to sell are elderly or underinsured, lacking funds to rebuild.
The January 2025 Palisades and Eaton fires killed 31 people and destroyed roughly 16,000 homes and structures. The blazes impacted $51.7 billion worth of homes in Los Angeles—approximately 11,000 residential properties, according to Redfin's analysis of Los Angeles City Council data. The typical impacted home had a pre-fire value of $3.7 million, with nearly 100 properties valued over $20 million.
Vacant lot listings have exploded in affected areas. Pacific Palisades saw 309 lot listings during the three months ending November 30, up from just seven a year earlier. Altadena listings jumped to 225 from two, while Malibu rose to 214 from 125.
"There are so many lots sitting on the market that sellers are starting to cut prices to attract offers," Khayalian said. "Many 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."
The typical lot sold in Altadena went for $510,000 during the three-month period, while Pacific Palisades lots sold for $1.6 million and Malibu lots for $1.3 million.
Property values in burn areas have plummeted 30% to 60%. Pacific Palisades saw average sale prices fall from $3.6 million before the disaster to $2.4 million by late 2025—a 33% decline. Altadena prices dropped even more dramatically, from $1.8 million to roughly $684,000—a 62% plunge.
Home sales have ticked up from record lows but remain below pre-fire levels. Pacific Palisades recorded 31 single-family home sales during the three months ending November 30, up from six in the immediate post-fire period but down from 45 a year earlier. Altadena saw 58 sales, up from 26 but down from 67.
Rebuilding has been slow. As of January 2026, authorities have issued over 2,600 rebuilding permits—only a fraction of destroyed housing. California has funded nearly 1,000 new affordable homes across Los Angeles County to help fire survivors stay in their communities.
The rental situation also became dire after the fires, with average rents jumping 20% in the two weeks following the blazes—double California's maximum increase allowed under anti-price-gouging laws. Some neighborhoods saw rent hikes of 30% to 50%.
California's Attorney General sued violators, including landlords in Hermosa Beach who raised rent 36% overnight. The state issued emergency orders to strengthen protections, and by mid-2025, Los Angeles County and city officials approved new penalties to fine landlords for unlawful rent hikes.
The price-gouging ban remained in effect through January 7, 2026, helping curb drastic rent spikes. However, some estimates suggest landlords collectively overcharged tenants by $7 million per month beyond legal limits after the fires.
Governor Gavin Newsom announced Tuesday that California will expand its CalAssist Mortgage Relief Program and explore new financing to help survivors bridge the gap between insurance payouts and rebuilding costs. The state has paid $5.98 million to 732 households so far, with most being Palisades and Eaton fire survivors.