Real estate professional offers a bleak outlook on LA’s future, citing reasons why homeowners may not return after fires

A Los Angeles realtor believes a staggering 70 percent of Pacific Palisades residents may never return to rebuild their homes.

The heartbreaking wildfires that swept through Southern California have left the community in despair. Over 50,000 acres of land have been scorched, 28 lives have been lost, and more than 16,000 structures have been destroyed since January 7.

Despite promises of restoration, former Million Dollar Listing real estate agent Josh Altman is skeptical about the feasibility of rebuilding. He highlights the harsh reality faced by many former homeowners, emphasizing the daunting challenges that lie ahead.

‘The residents are not avoiding coming back out of reluctance. They dearly wish to return,’ Altman expressed in an interview with Fox Business. ‘The primary obstacle is the financial aspect. I fear that many won’t be able to afford the cost of reconstruction.’

Altman is known for brokering high-end real estate deals across Los Angeles, outlined a daunting economic landscape. 

‘We’re talking about $1,000 per square foot to build in places like the Palisades and Malibu. With most people heavily underinsured and construction costs skyrocketing – lumber, steel, everything – it’s just not feasible for many,’ he said.

Altman’s grim prediction is compounded by the logistical nightmare of rebuilding amidst an area that looks more like a war zone full of burned out buildings, ash coating the area and toxic chemicals everywhere. 

‘Getting a construction crew to show up at your site is going to be nearly impossible when 16,000 structures – homes, schools, commercial buildings – have been destroyed. 

Former Million Dollar Listing real estate agent Josh Altman believes rebuilding will be a challenge and painted a devastating reality for many former homeowners

In an aerial view, neighborhoods lie in ruins in the wake of the deadly Eaton Fire  last week

Homes burned to the ground in the Eaton Fire in Altadena, California are seen in this aerial view

‘It’s a disaster. Even with insurance, I don’t know if they’ll be able to do it.’

Southern California has been battling relentless wildfires since early January, with flames engulfing entire communities and leaving destruction in their wake. 

As fire conditions eased slightly on Friday, the region braced for isolated pockets of rain over the weekend. 

While the much-needed precipitation could aid in controlling lingering hotspots, it also poses a new threat: mudslides in burn-scarred areas. 

In response to the massive fires, President Donald Trump declared a national emergency after touring the hardest-hit areas on Friday, including Pacific Palisades and Malibu. 

Accompanied by residents who had lost everything, Trump witnessed firsthand the immense scale of the catastrophe.

Early estimates peg the financial toll at around $50 billion, a figure that far surpasses previous disasters in the region. 

The situation has been further exacerbated by a shrinking insurance market in California, with major providers pulling out, reducing coverage, or refusing to write new policies altogether.

The Southern California communities were left devastated by unprecedented wildfires, which have scorched more than 50,000 acres, claimed 28 lives, and destroyed more than 16,000 structures since January 7

 Trump spoke with residents as he toured a fire-affected area in the Pacific Palisades neighborhood of Los Angeles

President Donald Trump talks with California Gov. Gavin Newsom after arriving on Air Force One at Los Angeles International Airport in Los Angeles, on Friday

Marine One, carrying US President Donald Trump, flies above devastation caused by wildfires around Los Angeles, California, on Friday

Trump and first lady Melania walk with Jason Hing, Chief Deputy of Emergency Services at the Los Angles Fire Department, left, and Capt. Jeff Brown, Chief of Station 69,

California Governor Gavin Newsom has approved a $2.5 billion relief package aimed at wildfire recovery, but Altman believes that funding alone will not be enough to overcome the hurdles of rebuilding.  

The state of California has a notoriously slow and bureaucratic construction process.

‘The recipe for success is cutting the red tape,’ Altman suggested. ‘Building a house in California is wrapped in so much bureaucracy. It can take a year just to get permits, and if you’re near the coast, the Coastal Commission could add another two years. 

‘It’s time for the governor to step up and start removing these roadblocks. We need to move forward as a team.’

Altman also suggested that specific regulations and taxes should be repealed such as the mansion tax and wildlife ordinances. 

‘Get rid of it for all the people who lost their houses,’ he said. ‘That’s how we’ll get back to being a strong Los Angeles.’

Altman also shared his take having toured the fire-ravaged communities himself. 

‘You have to see it to believe it,’ he said. ‘I’ve walked the Palisades and Malibu. It’s way worse in person than you could ever imagine. Hopefully, seeing this devastation firsthand will open up more funding on the federal level.’