Big Investors Snap Up Fire-Damaged Lots in Pacific Palisades Following January 7, 2025 Fire that Destroyed Half the Town

PACIFIC PALISADES, Calif. - A new analysis by Redfin shows that real estate investors purchased about 40% of vacant lots sold in fire-damaged areas of Pacific Palisades during the third quarter of 2025, sparking worries among locals about the community's future character.

Following the January 2025 Palisades fire's destruction of thousands of homes, many owners face tough choices between rebuilding or selling, leading to a surge in available lots and cash purchases by outside buyers.

The Los Angeles Times reported on January 8, 2026, that this trend-also seen in nearby Altadena and Malibu-could alter neighborhood demographics and affordability as investors flip properties or develop faster than individuals.

While some rebuilding has begun, with new homes receiving certificates of occupancy, the influx highlights tensions between rapid recovery and preserving the tight-knit feel of this Westside community.

Permits have been applied for on about 400 parcels among Pacific Palisades 6000 homes destroyed on January 7, 2025.

Most of the homeowners displaced by the Palisades fire have found housing elsewhere, often in Orange County or even further afield. Meanwhile, Sacramento politicians seem to favor high density housing which yields more Democrat voters.