Last spring, Realtor Teresa Fuller saw signs that the epic task of rebuilding Altadena could be a local affair, with potential buyers wanting to place a bet on the community\u2019s future. <\/p>\n
\u201cEarly on, the market was very active. A lot of Altadenans, a lot of La Ca\u00f1adans, a lot of people wanted to be involved in the rebuild,\u201d said Fuller, a real estate agent in Altadena.<\/p>\n
But as more and more lots hit the market, buyers and sellers both had to adjust their expectations. By mid-summer 2025, inventory had reached its high point, with around 160 active lot listings in Altadena, according to Fuller. That number dropped to 75 by the end of the year as prices fell. <\/p>\n
Now, there are growing signs that outside investors have moved in and dominated the market, with profound implications for the future.<\/p>\n
A new report from Redfin<\/a> shows that at least 40% of lot sales in the fire-damaged areas in both Altadena and Pacific Palisades went to investors in the third quarter of 2025. This raises the likelihood, some experts say, that outsiders may hold off on rebuilding to maximize their investment.<\/p>\n The finding comes amid worries from fire survivors in Altadena, Pacific Palisades and Malibu that their communities will be rebuilt by investors.<\/a><\/p>\n In Altadena, 27 of the 61 lots that sold in July, August and September of last year were purchased by investors, or 44%. Malibu saw a similar percentage of investor purchases, while in Pacific Palisades the ratio was 40%. <\/p>\n \u201cFollowing these disasters, it\u2019s really difficult for residents to hold onto their homes,\u201d said Daryl Fairweather, Redfin\u2019s chief economist. \u201cIt\u2019s really unfortunate.\u201d<\/p>\n By contrast, Redfin analysis showed that nationwide, less than a fifth of single-family homes \u2014 17% \u2014 were purchased by investors over the same time period. <\/p>\n Sellers often ask prospective buyers whether they plan to live in the property they are buying, but those calls have become much more rare over time for Fuller. More than half of those who come looking for a lot see the hurdles of building in charred neighborhoods and decide to switch their focus to existing homes, she said.<\/p>\n \u201cPeople are realizing how hard it is to build a house,\u201d Fuller said. \u201cIt\u2019s a full-time job.\u201d<\/p>\n As for investors, some are \u201cbuying and waiting to see what the new construction market looks like,\u201d she said. \u201cWe have a lot of developers in town who are really trying to be sensitive to fitting in to the neighborhood.\u201d<\/p>\n A year after more than 6,000 homes were destroyed in the Eaton fire, 2,600 rebuild applications had been submitted and 1,100 permits issued, according to Fuller.<\/p>\n