As Southern California grapples with devastating wildfires, former “Million Dollar Listing” real estate agent Josh Altman has made a startling prediction: up to 70% of Pacific Palisades residents may never rebuild or return to their homes.
Altman explains the reason isn’t a lack of desire to return but rather harsh financial realities.
Speaking on FOX Business Live on Friday, Altman highlighted the staggering costs of rebuilding in areas like Malibu and Pacific Palisades. “We’re talking about $1,000 per square foot to rebuild in these neighborhoods,” Altman said. “Many homeowners are underinsured, and the rising costs of construction materials like lumber and steel only add to the burden.”
Since Jan. 7, wildfires have ravaged over 50,000 acres in Southern California, claiming 28 lives and destroying approximately 16,000 homes and buildings.
Early estimates from AccuWeather and JPMorgan peg the financial losses at around $50 billion.
President Donald Trump toured the destruction firsthand on Friday, declaring a national emergency and meeting with impacted residents.
But even with state and federal relief efforts in motion, Altman doubts it will be enough.
Insurance and Bureaucracy Create Challenges
A critical issue, according to Altman, is the dwindling availability of insurance in California.
Many insurers have pulled out of the state or reduced coverage due to the frequency and cost of wildfires.
Without adequate insurance, rebuilding becomes an insurmountable challenge for many homeowners.
Beyond insurance, Altman points to California’s cumbersome building regulations as another major obstacle.
“The process of building a house here is wrapped in red tape,” Altman said. “It can take a year to get permits and another two years for approval from the Coastal Commission.
This bureaucracy needs to be cut if we want to recover.”
Altman also criticized state policies like the recently implemented mansion tax and wildlife ordinances, which he argues only exacerbate the problem. “These regulations need to go, at least for those who lost their homes,” he said.
Hope for Federal Assistance
Altman expressed hope that Trump’s visit would result in increased federal aid. “Walking through the devastation in person shows how much worse it is than it looks on TV.
Hopefully, this leads to more funding and support at the federal level.”
Meanwhile, California Governor Gavin Newsom has approved a $2.5 billion relief package for wildfire recovery.
However, Altman and other critics argue that more needs to be done, particularly in streamlining the rebuilding process and addressing insurance issues.
The Path Forward
With rain forecasted for the weekend, the immediate fire threat may ease, but it brings the risk of mudslides in burned areas.
While Southern California braces for yet another challenge, the road to recovery remains long and uncertain.
Altman’s bottom line? Without significant changes to policy and more support for affected homeowners, many may never be able to rebuild and return to their communities.
Opinion:
The heartbreaking reality here is a mix of systemic challenges and natural disaster fallout.
While the state’s relief efforts and federal emergency declaration are steps in the right direction, it’s clear that deeper structural changes are necessary.
Homeowners caught in this crisis face a double blow: first, the trauma of losing everything to the fires, and now, the financial impossibility of starting over.
Cutting bureaucratic red tape, addressing insurance industry concerns, and rethinking restrictive building regulations are critical steps to ensure Californians can rebuild their lives.
This isn’t just about homes; it’s about restoring hope and community in areas devastated by nature’s fury.
The question is, will state and federal leaders rise to the occasion?
This story is a stark reminder of the complexities of disaster recovery, especially when it intersects with skyrocketing costs and bureaucratic hurdles.
Josh Altman’s point about simple math driving people away from rebuilding is painfully accurate.
In areas like Pacific Palisades and Malibu, where $1,000-per-square-foot construction costs make recovery daunting, it’s no wonder many residents feel rebuilding is out of reach.
The situation also shines a light on systemic issues—insurance companies withdrawing from fire-prone regions, permitting processes bogged down in red tape, and policies like the mansion tax that arguably hinder recovery.
While Governor Newsom’s $2.5 billion relief package is a step in the right direction, it seems like a Band-Aid on a much larger wound.
Altman’s call to cut through bureaucratic gridlock is worth considering.
If California doesn’t find ways to streamline its permitting and construction processes, its reputation as an unlivable state for the middle and upper classes will only grow.
But let’s not overlook the political dimension here. Trump’s visit, while significant for federal aid discussions, underscores the ongoing debate about what roles state and federal governments should play in recovery efforts.
Should taxpayers across the country bear the brunt of rebuilding luxury homes in high-risk areas?
It’s a valid question and one that invites heated debate.
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What stands out most is the personal toll on residents. Whether they are underinsured due to policy gaps or simply victims of an unforgiving market, these families are left grappling with uncertainty.
Yes, some may argue they should have planned better, but how much foresight can you reasonably expect when your home and life savings are obliterated overnight?
It’s time for California and the nation to confront the root causes of these disasters and implement sustainable solutions, from fire prevention to fair insurance practices.
Without that, we’re likely to see more stories of displaced families, unaffordable rebuilding, and systemic blame-shifting.