Introduction to Burned Lots in Altadena and Pacific Palisades
The first vacant lot in Altadena went up for sale in late January. The listing promised “great opportunity to build” after the Eaton fire destroyed the home previously on the site. A few weeks later came half a dozen more listings. Now the floodgates appear open. “There is so many to choose from,” said Jeremy Hardy, a real estate agent with Craig Estates & Fine Properties.
Reasons for Selling Burned Lots
Two months after fires that tore through Los Angeles County and destroyed or seriously damaged more than 12,000 homes, property owners in Altadena and Pacific Palisades are increasingly selling their burned lots rather than undertake a time-consuming and costly rebuilding process. As of Monday morning, there were 49 burned lots for sale in Pacific Palisades, according to Zillow. In Altadena, there were 32. Real estate agents said their clients who chose to sell, or are debating it, are doing so for a variety of reasons. Some doubt they have the money to rebuild. Others are elderly and don’t want their last years consumed by construction. A few had owned rental properties and decided keeping them was not worth the hassle.
Interest from Developers
Many — if not most — of the people interested in buying burned lots have been developers, according to agents. It’s perhaps not surprising. Vacant land is typically bought with cash. Construction is time consuming, stressful and expensive in normal times, let alone in a disaster zone with toxic waste. “Building a house is one of the most complex and highly regulated activities you possibly can engage in,” said Brock Harris, a Keller Williams real estate agent who had the first burned lot listing in Altadena, which sold to a builder.
A lot for sale in the 400 block of East Marigold Street in Altadena.
(Juliana Yamada / Los Angeles Times)
Concerns About Gentrification
The developer influx could help communities build back quicker. But it’s also raising fears about gentrification and whether longtime owners are getting a fair price. Those concerns are particularly high in middle-class Altadena where residents have proclaimed that “Altadena is not for sale” through signs and rallies. At least eight burned lots have been sold in Altadena, with most selling in the $500,000 to $600,000 range, according to Zillow. Lisa Haussler, a real estate agent with Coldwell Banker who lost her Altadena home in the fire, estimates those lots are selling for around two-thirds of what the land would have fetched before the fire.
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“Get the In Case of Fire newsletter” As the threat of wildfires increases, we want to help you be ready. We’ll guide you through advance preparations and what to do if disaster strikes. Emails will land in your inbox every Thursday for seven weeks. Enter email address Sign Me Up You may occasionally receive promotional content from the Los Angeles Times. Haussler said that while she understands why people want to sell now, she’s recommending they pause — at least until the cleanup is further underway and it may be easier to attract higher bids. She said the fact developers are buying shows they believe there’s money to be made. “For our clients, we are really counseling to take a beat and let’s see what happens,” said Haussler, who plans to rebuild her house.
A lot for sale in the 2900 block of Emerson Way in Altadena.
(Juliana Yamada/Los Angeles Times)
Impact on the Community
In the years before the fires, Altadena home prices soared, which boosted existing homeowners’ wealth but also priced out many people who grew up here. Research suggests home values could escalate further. Disaster recovery experts say it’s usually people of more modest means who hit a wall in the rebuilding process and end up selling their lots to developers and high-income individuals who build pricier homes. In the process, fire victims can see their wealth stripped if they sell too low, especially if they were underinsured. Heavenly Hughes, who grew up in Altadena, said that given the nation’s income disparities, she has particular concern about the town’s long-standing Black community, which was already dwindling because of pre-fire gentrification and saw its homes severely damaged or destroyed at higher rates than other groups during the blaze. “Will we, as a Black community, be wiped out?” said Hughes, who runs the Black-focused mutual aid organization My Tribe Rise.
Rebuilding Efforts
Nicole Lambrou, an urban planning professor at Cal Poly Pomona, studied rebuilding efforts in Paradise, Calif., where the Camp fire destroyed more than 80% of the town’s homes in 2018. She and her colleagues from UC Merced and UCLA found that five years after the destruction, incomes, education levels and home prices were all higher. “Everyone was telling us that there is just a new demographic of people moving in,” Lambrou said. The process would start with lot sales. Berkshire Hathaway agent Kurt Frejlach said he had about four offers — all from developers — on a nearly 9,000-square-foot lot that he listed for $625,000. He said his client’s mom had moved out of the property before the fires into an assisted living facility and the family decided to sell after the house burned and “before the market is inundated with lots.”
Conclusion
The sale of burned lots in Altadena and Pacific Palisades has raised concerns about gentrification and the impact on the community. While developers may be able to help rebuild the area quickly, it is essential for homeowners to consider their options carefully and seek advice from real estate agents and other experts. By understanding the process and the potential consequences, homeowners can make informed decisions about their properties and ensure that they receive a fair price.
FAQs
Q: Why are homeowners selling their burned lots?
A: Homeowners are selling their burned lots for a variety of reasons, including the cost and time required to rebuild, as well as the hassle of dealing with construction and toxic waste.
Q: Who is buying the burned lots?
A: Many of the buyers are developers who see an opportunity to build new homes and sell them for a profit.
Q: What are the concerns about gentrification?
A: The influx of developers and new, more expensive homes may lead to gentrification, pricing out long-time residents and changing the character of the community.
Q: What can homeowners do to protect their interests?
A: Homeowners should seek advice from real estate agents and other experts, and consider their options carefully before making a decision about their property.
Q: How can the community mitigate the effects of gentrification?
A: The community can work together to implement policies that limit absentee homeownership and support long-time residents, such as providing funding for rebuilding and matching fire victims with non-profits that can offer assistance.
