In the wake of devastating wildfires that swept through Pacific Palisades and Altadena just two months ago, the local real estate market is experiencing an unexpected surge. Despite the destruction of thousands of homes, selling activity has already gained momentum, with more than 80 new listings of fire-damaged lots hitting the market since mid-February.
For many homeowners, the decision to sell rather than rebuild is a difficult and deeply personal one. However, early indicators suggest that demand remains strong. “All of a sudden, the floodgates are opening,” said Anthony Marguleas, founder of the Palisades-based real estate agency Amalfi Estates. Scorched land parcels are attracting significant interest, often selling above initial expectations, demonstrating the continued desirability of these high-end neighborhoods.
Investors and Developers Drive the Demand
The majority of buyers are small and midsize real estate investors and developers looking to capitalize on the opportunity. These buyers typically purchase lots with cash, either to hold for future appreciation, flip for a quick profit, or build new single-family homes for resale.
Marguleas noted that land prices in the Riviera neighborhood—one of the most prestigious enclaves in the Palisades, known for its celebrity residents and exclusive country club—have already risen more than 10% since the fires. Properties currently in escrow indicate that values are on the upswing, reinforcing confidence in the long-term resilience of the market.
The Dilemma for Homeowners: Rebuild or Sell?
For those who lost their homes, the decision to stay or sell is complicated. While property values are projected to rebound even further once reconstruction efforts are completed, many homeowners face significant financial burdens in the meantime. Even with insurance payouts, the out-of-pocket costs to rebuild can be staggering. Some sellers cite the ongoing expenses of maintaining a vacant lot as a key reason for opting to sell now rather than wait for the neighborhood’s full recovery.
“There’s a daily cost to carry the property,” explained local real estate agent Richard Schulman. “So money today is better than money tomorrow.”
A Market Poised for Long-Term Growth
While the immediate selling activity represents only a fraction of the thousands of homes lost, it offers a glimpse into the shifting dynamics of the market. The interest from developers and cash buyers signals confidence in the region’s ability to recover and thrive. Once reconstruction efforts fully take shape, these neighborhoods could see even greater appreciation in value, particularly as newly built homes incorporate fire-resistant designs and upgraded safety measures.
For now, the wildfire-stricken communities of Pacific Palisades and Altadena remain at a crossroads—between those looking to move on and those betting on a stronger, more resilient future. One thing is clear: despite the devastation, these coveted LA neighborhoods are far from losing their appeal.