No. 1 Reason Why Some Wildfire Victims Won’t Return
After making a shocking prediction that up to 70% of Pacific Palisades residents won’t return to rebuild and live in their homes, former "Million Dollar Listing" real estate agent Josh Altman is explaining exactly why.
It’s Not a Desire Not to Return, But a Matter of Affordability
"They’re not going to not return because they don’t want to return. Of course, they want to go back there… They’re not going to return because it’s simple math," Altman said on "FOX Business Live," Friday.
The Math Just Doesn’t Add Up
"I don’t believe they’re going to be able to afford to rebuild with most of the people that are heavily underinsured, with the costs of construction, lumber, steel. We’re talking about a $1,000 [per] foot building in the Palisades and in Malibu."
A Crisis of Affordability
Southern California has been grappling with a surge of wildfires since Jan. 7. Over 50,000 acres have been scorched, 28 people have been killed, and upwards of 16,000 homes and buildings have been completely lost. Early estimates put the total financial loss of the wildfires in the $50 billion range.
Insurance Companies’ Withdrawal
Leading up to the fires, several insurance companies either fled, stopped writing new policies, or reduced coverage in the Golden State.
A Recipe for Disaster
"And that’s on top of getting a construction crew to show up to your site when there’s 16,000 structures that have been burned between houses, schools, commercial spaces. It’s a disaster," Altman expanded. "That’s what I’m saying, I don’t know that they’ll be able to do it with the insurance."
A Call to Action
Altman wants Governor Newsom to take his response a step further by removing bureaucratic roadblocks that make building homes in California timely and costly.
"The recipe for success is going to be cutting the red tape. Building a house, the process in California, which is just wrapped in red tape, is absolutely impossible: a year to get permits; you’ve got the Coastal Commission, which could be another two years. It’s time for the governor to start cutting the red tape. We got to move forward as a team," he said.
Conclusion
The real estate expert, who spoke ahead of the president’s visit, hoped that Trump seeing the devastation with his own eyes would lead to more federal aid and assistance.
Frequently Asked Questions
Q: Why won’t some wildfire victims return to their homes?
A: The main reason is that they cannot afford to rebuild due to the high costs of construction, lumber, and steel.
Q: What is the total financial loss of the wildfires?
A: Early estimates put the total financial loss in the $50 billion range.
Q: What is the impact of the insurance companies’ withdrawal from the Golden State?
A: The insurance companies’ withdrawal has left many homeowners underinsured, making it difficult for them to rebuild.
Q: What can be done to address the issue of affordability?
A: Cutting the red tape and reducing bureaucratic hurdles can help make the process of rebuilding more efficient and affordable.
