Josh Altman, the former “Million Dollar Listing” star and LA real estate expert, made a jaw-dropping prediction: up to 70% of Pacific Palisades residents might never return to rebuild their homes after the devastating wildfires. Why? It’s simple math, he says.
“They want to go back, but they can’t afford to,” Altman explained. The costs of construction, materials like lumber and steel, and the complexity of rebuilding have made it nearly impossible for many homeowners to recover.
Altman’s stark warning comes after Southern California’s wildfires scorched over 50,000 acres, left 28 dead, and destroyed nearly 16,000 homes and buildings. The financial toll could top $50 billion, according to estimates from AccuWeather and JPMorgan.
The true cost of rebuilding
Altman stresses that rebuilding in areas like the Palisades and Malibu is astronomically expensive. “We’re talking about $1,000 per square foot in these areas,” he said. With many victims severely underinsured, they are facing a harsh reality. Construction costs are sky-high, and the insurance payouts often fall short.
But the challenges don’t end there. Thousands of properties have been burned—homes, schools, and businesses alike. Getting construction crews to show up? That’s another hurdle. With so many structures destroyed, workers are in high demand, causing delays.
“It’s a disaster,” Altman added. “I don’t know if insurance alone will cover the cost to rebuild.”
Insurance companies’ crisis
Leading up to the fires, insurance companies had already begun pulling out of California. Some stopped offering new policies, while others reduced coverage. This only worsened the situation for residents who were already struggling to protect their homes from wildfires.
Political action needed now
California Governor Gavin Newsom has signed a relief package, pledging $2.5 billion for wildfire recovery. But Altman believes more needs to be done. He calls on Newsom to cut through California’s notorious red tape, which makes it time-consuming and expensive to rebuild.
“It takes a year to get permits, sometimes two just for the Coastal Commission,” Altman said. “We need to cut the red tape and move forward as a team.”
Cut the red tape!
Altman argues that getting rid of bureaucratic obstacles is crucial to speeding up recovery. He pointed to state and local ordinances like the mansion tax and wildlife regulations, which he believes hinder rebuilding efforts.
“The mansion tax was a huge mistake,” he said. “It’s time to get rid of it for homeowners who lost everything. Let’s remove the wildlife ordinance, too. Cutting the red tape is how we rebuild.”
Altman’s plea comes as the region faces a lengthy recovery. The wildfires have left destruction in their wake, and rebuilding won’t be quick. For some, it may not even be possible.
Federal aid in sight?
With President Donald Trump touring the affected areas and seeing the devastation firsthand, Altman hopes this will lead to increased federal support. “You have to see it to believe it,” Altman said. “I’ve walked through the Palisades and Malibu. It’s worse than anyone can imagine.”
He believes that the president’s visit will help secure additional funding for recovery efforts at the federal level.
Rain brings relief—and new risks
As critical fire conditions ease, rain is expected to bring some relief this weekend. While it will help with fire containment, the rain could trigger mudslides in areas already scarred by the fires. Communities are bracing for more challenges in the aftermath of these devastating wildfires.
The real question now: Will the people of Pacific Palisades, Malibu, and other affected areas have the financial resources and support to rebuild their lives? The clock is ticking, and with each passing day, the obstacles only grow larger.
