A new report from Redfin highlights a shift in the Southern California real estate landscape in the aftermath of the January 2025 California wildfires.
Vacant lots in neighborhoods hardest hit by the fires are piling up on the market, and real estate investors are acquiring a significant portion of those that do sell.
According to Redfin’s analysis of land sales during the third quarter of 2025, investors purchased roughly 40% of vacant residential lots sold in Pacific Palisades, Altadena, and Malibu — areas that experienced widespread destruction. In the 90272 ZIP code covering Pacific Palisades, investors accounted for 48 of the 119 lot sales, a share of 40.3%. Similarly high investor participation was recorded in Altadena’s 91001 ZIP code, where 27 of 61 lots sold went to investors (44.3%), and in Malibu’s 90265 ZIP code, where investors bought 19 of 43 lots (44.2%).
Prior to the wildfire outbreak, such investment activity in vacant lots was virtually nonexistent; there were no investor purchases of vacant land in these areas during the same period a year earlier.
Redfin notes that the trend reflects the difficult decisions facing homeowners whose properties were destroyed. Many of the lots now for sale once held houses that burned in the wildfires. Some homeowners lack the financial resources or sufficient insurance coverage to rebuild, prompting them to sell their land — sometimes at relatively low prices — to investor buyers who may plan to develop or flip the property.
Redfin agents working in the impacted communities note that rebuilding has been slow, with delays in permit approvals and construction activity lagging nearly a year after the fires. In wealthier neighborhoods like Pacific Palisades, some former homeowners have purchased other homes in the region and are considering reconstruction at a later date. In contrast, in areas like Altadena, community members have resisted selling as a way to preserve neighborhood character, though financial pressures are leading some owners to accept investor offers.
Despite the strong investor interest, the market is oversupplied. The number of vacant lots listed for sale has increased dramatically compared with pre-fire levels, and many remain unsold as demand fails to keep pace with inventory. Sellers in Altadena have reported having hundreds of lots on the market — a substantial rise from only a few listings a year earlier — and price reductions are becoming more common as owners compete for buyers.
Typical selling prices also vary by community. During the period analyzed, lots in Altadena sold for around $510,000 on average, while lots in Pacific Palisades and Malibu fetched approximately $1.6 million and $1.3 million respectively.
