Sales up, prices down a year after LA wildfires
The share of home sales in Pacific Palisades and Altadena have jumped 50% or more, according to Realtor.com data — but prices have fallen sharply.
One year ago today, two blazes ignited in what became the second- and third-most destructive wildfires in California history.
The deadly Palisades and Eaton fires, which tore through Los Angeles County's Pacific Palisades and Altadena neighborhoods, collectively burned over 37,000 acres and destroyed more than 16,000 structures, over 11,000 of which were homes.
In the year since, the Angelenos who decided to rebuild have faced permitting and construction delays, while others have chosen to plant roots elsewhere, leading to a large uptick in home sales — driven in part by investor activity, according to a recent Redfin analysis.
Sales rise: Between January and September 2025, the share of homes that sold in Pacific Palisades rose 50% year-over-year and jumped 58.4% in Altadena, according to Realtor.com data.
Prices fall: Buyer activity is up, but sale prices are about half of what they were a year ago. In Pacific Palisades, the median sale price fell to $1.9 million from $3.7 million, and the median sale price in Altadena dropped to $650,000 from $1.35 million.
That's not because homes in those areas are worth significantly less — it's due to the increase in sales of now-vacant lots in the wake of the fires, according to Hannah Jones, senior economic research analyst at Realtor.com.
The newer median sale prices are "in line with the typical listing price for lots" in both areas, the report noted.
Investors see opportunity: A few months after the fires, real estate investors signaled their interest in helping rebuild the area as they started snapping up lots in Malibu and in Altadena.
That trend has continued, with Redfin and Realtor.com economists estimating that investors are buying 30-40% of vacant lots in the area.
"We're definitely seeing money flowing in to buy developable lots because lots are available now," Douglas Elliman agent Victor Currie said in Realtor.com's report, adding that investors "will likely need to be prepared for the carrying costs while they go through the massively backed-up permitting process."
State considers major changes: Even before the Palisades and Eaton fires, state lawmakers were debating Zone Zero, a proposal that would require many California homeowners to make sure that the five feet surrounding their home is clear of all flammable materials, including some plants. Zone Zero was initially slated to take effect in 2023, but debate over its requirements — especially concerning vegetation — has delayed its implementation.
Regulators are now expected to finalize Zone Zero rules early this year. Once the specifics are ironed out, homeowners will have three years to comply.