Fire-Damaged L.A. Homes See Surging Demand Despite Risks

Properties destroyed in January’s wildfires are entering bidding wars as sellers face significant financial losses and rebuilding challenges.

A Pacific Palisades home destroyed in the January wildfires received over 60 offers and is in escrow for more than $1 million, despite being listed for $999,000.
The wildfires destroyed over 12,000 structures, with damages estimated at $164 billion, leaving many homeowners grappling with whether to rebuild or sell at a loss.
Insurance coverage often falls short of rebuilding costs, particularly in high-value areas like Pacific Palisades, where construction expenses can reach $1,500 per square foot.
Older homeowners and those underinsured are increasingly choosing to sell rather than rebuild, contributing to a volatile real estate market in fire-affected areas.
Experts predict rising home prices and limited availability in Los Angeles County as rebuilding efforts and housing demand strain resources.