Impact of Fires on L.A. Real Estate Market

Introduction

Speaker: Luxury realtor Josh Altman
Context: Discussion on the effects of recent fires on the L.A. real estate market

Increased Demand:
- A thousand new renters and buyers entering the market
- Surge in demand for immediate occupancy in turnkey properties
- Demand for long-term leases (2-3 years) due to house rebuilding times
Shift in Housing Preferences:
- Some homeowners choosing not to return to fire-affected areas like the Palisades
- Selling land and seeking new homes instead

Increase in Listings: Typically $150 million/month; $150 million in the past 48 hours alone
Landlords' Response:
- Putting houses on the market, often at premium prices assuming insurance coverage
- New listings in areas like Brentwood, Santa Monica, Bel Air, Beverly Hills

Building Regulations:
- Slow processes in California, especially with green rules and regulations
- Average build time for homes: 3 years, including permits
- Hillside builds take much longer (4-5 years; Malibu up to 7-8 years)
Insurance Issues:
- High costs of fire insurance, often exceeding monthly mortgage
- Difficulty in obtaining insurance, affecting property sales
- Significant impact on prices in areas like Bel Air, Brentwood, Beverly Hills, Malibu

Ongoing challenges with rebuilding and insurance
Long-term implications for L.A. real estate market dynamics due to fire risks and regulatory hurdles

Note: For those investing or buying in these regions, expect longer timelines and higher insurance costs.