After nearly a year since the devastating wildfires in California last January, real estate investors have purchased nearly 40% of the land sold in the affected areas.
According to a report released by Redfin on December 30th, the now vacant plots were once home to some of the most expensive residences in the United States, but they were reduced to rubble in the fires. The wildfires that broke out a year ago swept through over 40,000 acres of land in the outskirts of Los Angeles, destroying more than 11,000 standalone homes.
An analysis by Zillow released on the same day also revealed that before the fires, the affected areas had 19,605 homes with a total value of $46 billion, of which over 11,000 homes were burned down. As of December 2024, the median home price in the outskirts of Los Angeles was $1.95 million.
According to data from Redfin, in the third quarter of last year, out of 119 vacant lots for sale in the Pacific Palisades area, 48 were bought by investors; in the nearby Altadena area, out of 61 vacant lots for sale, 27 were purchased by investors; and in Malibu, out of 43 vacant lots, 19 were acquired by investors.
The analysis by Redfin pointed out that many investors bid too low for land in Altadena, where some of the destroyed homes were built in the 1940s and 1950s, with prices mostly ranging between $500,000 and $600,000. The report mentioned that while some homeowners rejected these bids, others were forced to sell due to a lack of funds for rebuilding.
In contrast, a typical vacant lot in Pacific Palisades sold for $1.6 million, while in Malibu, it was $1.3 million.
The report stated, “It is not uncommon for investors to buy and develop land after natural disasters.”
However, despite investors gradually acquiring vacant land in the market, Redfin agents noted that there is still a large number of unsold lots, with many remaining unclaimed.
Meanwhile, homes that still stand undamaged in the fire-affected areas can attract offers as long as they are reasonably priced, and homeowners typically handle the ash and smoke damage themselves.
Redfin reported that in the three months leading up to November 30th last year, there were 31 standalone homes sold in Pacific Palisades, a significant increase from the previous three months following the fire when only 6 homes were sold. Altadena saw 58 standalone homes sold, surpassing the low of 26 homes sold in the three months post-fire.
Zillow found that from December 2024 to November 2025, the median home price in the 5-mile radius around the fire-affected area dropped by 1.7%. Similarly, in the greater Los Angeles metropolitan area over 20 miles away from the fire zone, the median home price also decreased by 1.9%.
In the month of the fire in January 2025, there was a 194% increase in the number of new listings for homes within a 5-mile radius of the fire zone compared to December 2024.
Redfin stated in the report, “For those looking to buy property in this area, the most important thing is to determine if they can afford insurance. California mortgage institutions require homeowners to have fire insurance, with premiums having increased by 35% to 50% since the fires.”