Vacant Lots Multiply After L.A. Wildfires as Investors Move In

The wildfires that tore through parts of Los Angeles in January 2025 left lasting damage. Nearly a year later, they have also reshaped the local real estate market. Large numbers of burned properties are now being sold as vacant lots, and investors are stepping in fast.

A new report from Redfin shows that investors are buying about 40% of all land sales in neighborhoods hit hardest by the fires. These purchases are changing the pace and future look of several well-known communities.

Investors Take a Large Share of Lot Sales

In the Pacific Palisades area (ZIP code 90272), investors bought 48 of the 119 vacant lots sold in the third quarter, or just over 40%. A year earlier, there were no lot sales at all in that area.

In Altadena (ZIP code 91001), investors purchased 27 of the 61 lots that sold, making up more than 44% of sales. Again, there were no lot sales in the same period a year ago.

In Malibu (ZIP code 90265), investors bought 19 of the 43 lots sold, about 44%. That is more than double the share from a year earlier.

Low Offers and Tough Choices for Owners

“In Altadena, there’s a strong message that the community is not for sale,” said Sylva Khayalian, a Redfin Premier Agent. “Neighbors are urging each other not to sell, but for some homeowners, selling is the only choice that makes sense.”

Many of the homes destroyed in Altadena were built in the 1940s and 1950s. After the fires, some owners found themselves underinsured or without the funds needed to rebuild. As a result, investors have been making low offers on lots, hoping to build and resell new homes later.

Some sellers are holding firm, but others are accepting offers out of need. Permit delays and slow rebuilding timelines have added pressure, even though more builders have started breaking ground in recent weeks.

Renting While Deciding What Comes Next

In higher-priced areas like Pacific Palisades, some homeowners are buying other homes while deciding whether to rebuild. Justin Vold, another Redfin Premier Agent, said one client purchased a $3.75 million home near Santa Monica and plans to rebuild later with an architect.

Another client whose Malibu home burned bought a $4.68 million home in Pacific Palisades that survived the fires but still carries landslide risk.

Vold expects more homes and lots to come on the market as insurance coverage for temporary rentals ends and more residents decide rebuilding is not worth the cost or wait.

Vacant Lot Listings Climb Fast

As rebuilding decisions stall, the number of vacant lot listings has jumped sharply.

• Pacific Palisades saw 309 lot listings in the three months ending Nov. 30, up from just seven a year earlier.
• Altadena had 225 lot listings, compared with only two the year before.
• Malibu listings rose to 214, up from 125.

With so much land for sale, prices are starting to slip.

“Many Altadena lots are selling in the $500,000 to $600,000 range,” Khayalian said. “Before the fires, homes on those lots could have sold for $1 million or more.”

Redfin data shows the typical lot sold for about $510,000 in Altadena, $1.6 million in Pacific Palisades, and $1.3 million in Malibu.

A Familiar Pattern After Disasters

Redfin noted that investor activity often increases after natural disasters. As more homeowners weigh their options, the supply of vacant land could continue to grow.

For now, Los Angeles neighborhoods hit by the 2025 wildfires are caught between rebuilding hopes and fast-moving investors, with long-term impacts still taking shape. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.