Two years post-fire, only 316 new homes completed in Palisades and Altadena

Reconstruction efforts in the Palisades and Altadena have slowed to a crawl two years after the January 2025 wildfires destroyed thousands of structures.

County data reveals that only 254 new homes have been completed in Altadena, where the Eaton Fire destroyed more than 9,419 structures. In the Palisades, where the fire claimed 6,822 buildings, just 62 new homes have been finished as of October, according to Kevin Pazirandeh’s Pali Rebuild Map. Pazirandeh predicts the completion rate will rise in the coming months, noting that more than 1,000 rebuild projects began in the Palisades this summer.

Developers report that the primary bottlenecks have shifted from permits to financing and utilities. Sean Burton, chief executive of Century City-based Cityview, stated that the process is slower than anticipated. His firm launched Genesis Builders last year to offer fixed-price rebuilding templates. Burton’s company is currently working with 40 families in Altadena and had 16 homes under construction as of mid-September. Homes through the program range in price from $700,000 to $1,000,000.

Other builders are seeing similar trends. Steve Schlageter, chief executive of Thomas James Homes, noted that the city of Los Angeles is now issuing Palisades permits in less than two months, a significant decrease from the six or seven months required before the fires. However, he and other executives identified insurance and lending as the larger hurdles. Trent Klatte, chief executive of West End Construction, said one prospective client waited over two months for an insurance adjuster to respond to an estimate submitted in late July.

A May survey by the nonprofit Department of Angels found that nearly half of fire survivors have lost or will soon lose insurance coverage for temporary housing. Two-thirds of those surveyed remain displaced. Burton attributed many of these issues to underinsurance, particularly among families who owned their homes for generations. He described the local capital market as worse for real estate than the 2008 financial crisis.

While builders push forward, investors are acquiring a large share of the available land. Redfin data showed that investors bought about 40% of vacant lots sold in the Palisades, Altadena, and Malibu in the third quarter of last year. A community group called Altadena Not for Sale estimated the investor share at 60% for Altadena. Burton cited past disasters, such as the 2018 Camp Fire in Paradise, where more than a quarter of owners never rebuilt, and expects a similar outcome in Altadena.

Political tensions have also emerged around the reconstruction pace. Governor Gavin Newsom signed SB 1090 in September, placing a three-year pause on high-density development proposed after October 1 in Altadena. This legislation has led to lawsuits from developers including Kensington Homes. In the commercial sector, developer Rick Caruso reopened Palisades Village on August 15 following a $100 million restoration. The project is currently the first major commercial space to return to the area.

Mayor Karen Bass faced criticism during a campaign debate this week regarding the slow recovery. Councilmember Nithya Raman accused the mayor of failing to appoint a dedicated reconstruction overseer. Bass responded by blaming insurers and lenders for the delays. On Monday, Bass received an endorsement from Caruso, who stated in an interview that the mayor has worked hard to learn from past mistakes.