A year after the destructive wildfires, new analyses show investors are aggressively purchasing vacant lots in burn zones while overall housing values in affected areas exceeded $46 billion before the fires.
By yourNEWS Media Newsroom
Nearly a year after January’s devastating wildfires swept through parts of Los Angeles County, real estate investors have purchased close to 40 percent of the vacant lots sold in fire-impacted areas, according to reporting by the Epoch Times.
A report released Dec. 30 by Redfin found that many of the now-empty parcels once held some of the most expensive homes in the country before wildfires tore through more than 40,000 acres and destroyed over 11,000 single-family residences across Los Angeles suburbs.
Separate findings from a Zillow analysis, also published Dec. 30, estimated that the total residential value of 19,605 homes located within the wildfire zones reached $46 billion prior to the fires. More than 11,000 of those homes were ultimately destroyed.
Before the fires, the median home value in Los Angeles suburbs stood at $1.95 million as of December 2024. Zillow reported that housing supply near the burn areas increased sharply once the fires ended, with new listings within five miles of the fire perimeters continuing to rise from December 2024 into January 2025.
“While home values nearby have dipped a bit, in line with broader Los Angeles trends, the most evident impact was on supply,” Orphe Divounguy, a senior economist at Zillow, said in the report. “The sharp increase in listings just outside the burn zones likely reflects a mix of homeowners accelerating planned sales or owners of second homes deciding to list in response to the sudden shift in local demand.”
Redfin data shows that investors purchased 48 of the 119 vacant lots sold in Pacific Palisades during the third quarter. In Altadena, investors bought 27 of the 61 available lots, while in Malibu, 19 of 43 lots were acquired by investors.
According to Redfin, many investors made low offers in Altadena, where numerous destroyed homes dated back to the 1940s and 1950s. Vacant lots there have typically sold for between $500,000 and $600,000. While some owners rejected these offers, others sold because they lacked the financial resources to rebuild.
In contrast, the typical vacant lot sold for $1.6 million in Pacific Palisades and $1.3 million in Malibu.
“It’s not uncommon for investors to buy and develop land after natural disasters,” the Redfin report stated.
Despite investor activity, Redfin agents said a substantial amount of vacant land remains on the market due to the sheer volume of available lots. Meanwhile, homes that survived the fires are attracting offers when priced competitively, with sellers often responsible for remediating ash and smoke damage.
Redfin recorded 31 single-family home sales in Pacific Palisades during the three months ending Nov. 30, up from just six sales in the three months immediately following the fires. In Altadena, agents reported 58 single-family home sales, up from a post-fire low of 26.
Zillow found that median home values within five miles of the fire perimeters declined 1.7 percent from December 2024 through November 2025. By comparison, median home values across the broader Los Angeles metro area, more than 20 miles from the burn zones, fell 1.9 percent over the same period.
Immediately after the fires, new listings within five miles of the affected areas surged 194 percent in January 2025 compared with December 2024, Zillow reported.
“The most important thing someone looking to buy in this area can do is figure out if they can afford insurance,” the Redfin report said. “Mortgage lenders in California require homebuyers to have fire coverage, and premiums have gone up by 35% to 50% since the fires.”
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