Josh Altman, a prominent figure from “Million Dollar Listing,” believes that the Pacific Palisades may never return to its former state. In a recent discussion, he raised concerns about the aftermath of the destructive fires that have impacted families in this Southern California community.
According to Altman, many homeowners are finding themselves inadequately insured, with his insurance agent sharing that over 90% of affected individuals are “heavily underinsured.” He estimates that around 65-70% of families may not come back to the Palisades or Malibu, as he has been receiving numerous inquiries from those looking for real estate options in different neighborhoods.
The ongoing fires are a significant issue, and with multiple incidents occurring in the area, many have started to question their safe return. Altman noted that many residents simply do not wish to endure the stress of rebuilding in these fire-prone zones. However, he remains optimistic about the long-term appeal of the Palisades, emphasizing that while it will attract a new demographic, its desirability as a real estate market will persist due to its location and community amenities.
Additionally, Altman highlighted growing frustrations among residents regarding insurance policies. Many who are unable to secure coverage statewide are considering relocating to areas like Orange County, where they hope to find better options amidst a moratorium on insurance near fire-damaged regions.
He expressed that the daunting challenge of rebuilding homes, especially when costs can reach upwards of $1,000 per square foot, is discouraging for many. Consequently, many homeowners might choose to sell their properties rather than contend with the complex and lengthy construction process that could take years, especially given the additional challenges posed by California’s regulations.
With the Pacific Palisades fire currently 31% contained, it has tragically claimed ten lives and resulted in significant damage to over 3,500 structures since it began on January 7. The path forward remains uncertain, but Altman emphasizes the need for backyard rebuilding efforts, which likely will extend over several years.
