As California burns again, an investor snaps up Malibu lots
Far fewer homes are at risk so far, but wildfires are prompting evacuations just outside of LA as a foreign buyer drops millions on destroyed beachfront.
California is burning once again, with homeowners being told to evacuate as the impacts of January's devastating wildfires are still being felt.
Meanwhile, an unidentified investor is looking to the future and snapping up prime Malibu property with a plan to rebuild and create "a very desirable spot for a lot of wealthy people to try to buy a beach house," according to a story first reported by Realtor.com.
Where the fires are burning: There are multiple active wildfires, most notably the Gifford fire, which started on August 1 and was recently declared a "megafire" after destroying more than 100,000 acres of land in San Luis Obispo and Santa Barbara counties.
The Canyon fire, which started August 7, has burned more than 5,000 acres along the border of Ventura and Los Angeles counties but was more than 90% contained as of August 11.
Impact on housing: Unlike the Eaton and Palisades fires earlier this year — which leveled 18,000-plus homes — these latest fires have primarily burned land, although some homes have been damaged or destroyed.
On Aug. 11, the state's insurance commissioner urged evacuees to keep receipts and other documentation of their costs to support claims for reimbursement from their insurance companies.
A makeover in Malibu: It's not clear how the current fires will affect future real estate sales, but they could spur a land grab — at least that's what the Malibu area is experiencing eight months after fires ripped through the community.
A foreign investor has been buying up burned-out oceanfront lots in the iconic and celebrity-rich environment, where the going rate for properties damaged by the Jan. 2025 fires has been in the seven figures.
Weston Littlefield, one of the region's top luxury agents, told Realtor.com that his client is focusing on lots with 40-plus feet of frontage — including properties that weren't for sale. It was a "tough subject," Littlefield said, as many owners had sentimental attachments to the land.
The challenges of rebuilding: Sentiment aside, many homeowners "just didn't want to go through the rebuilding process because of how long they knew it was going to take to really come back," Littlefield noted.
But it will come back, with brand-new construction, he added. And once it does, "I think it's going to be a very desirable spot for a lot of wealthy people to try to buy a beach house."
Other investors have focused on nearby areas including Altadena, where a lottery winner was reported to have snatched up at least a dozen burned-out lots in June.