Analysis Shows Investor Purchases Surging as Homeowners Weigh Rebuilding
Real estate investors are purchasing a significant share of vacant land in areas affected by the January 2025 California wildfires, accounting for roughly four in 10 lot sales in some of the hardest-hit communities, according to a new analysis by real estate brokerage Redfin.
In Pacific Palisades, investors bought 48 of the 119 vacant lots sold during the third quarter, representing 40.3% of transactions in the 90272 ZIP code. No lots were sold in the area during the same period a year earlier, Redfin said.
A similar pattern has emerged in Malibu. Investors purchased 19 of the 43 lots sold in the 90265 ZIP code during the quarter, or 44.2%, more than double the share recorded a year earlier.
Redfin agents say the post-fire market reflects both investor interest and difficult decisions facing homeowners whose properties were destroyed. Some residents have opted to buy replacement homes while deciding whether to rebuild, said Justin Vold, a Redfin agent in Pacific Palisades.
One of his clients purchased a $3.75 million home near Santa Monica while planning a rebuild with an architect. Another client whose Malibu home burned bought a $4.68 million house in Pacific Palisades that survived the fires but carries landslide risk.
Vold said additional land is likely to come onto the market as insurance coverage for temporary housing expires and more residents abandon plans to rebuild. While investor activity after natural disasters is common, Redfin agents note that supply currently exceeds demand in fire-impacted neighborhoods.
Listings have surged even as sales remain limited. During the three months ending Nov. 30, Pacific Palisades recorded 309 active lot listings, compared with just seven a year earlier. Malibu had 214 listings, up from 125. The typical lot sold for $1.6 million in Pacific Palisades and $1.3 million in Malibu, according to Redfin.
Valuing properties has been challenging due to limited turnover and damaged infrastructure, said Carlos Castillo, a Redfin Premier agent. In Pacific Palisades, there were 31 single-family home sales during the three months ending Nov. 30, up from six immediately after the fires but down from 45 a year earlier. Vacant lot sales, by contrast, totaled 107 during the same period, up from none a year earlier, marking a reversal from pre-fire trends. Malibu recorded 37 lot sales, up from 12.
