How to Buy a Burned Lot or a Rebuilt Home in Altadena or the Palisades: Permits, Soil, Offers and the Numbers (October 2026)

Twenty-one months after the January 2025 Eaton and Palisades fires, Los Angeles County's burn areas have become a market of their own. On West Palm Street in Altadena, the Los Angeles Times reported on October 24 that one couple's rebuilt house was less than a week from final inspection and they expect to be home for Thanksgiving, while their longtime neighbors two doors away had just sold their lot to a nonprofit housing developer and moved to the Pacific Northwest. "Some are returning, some are leaving," columnist Steve Lopez wrote.

The numbers show both sides. In Altadena, the Times reported 233 new homes completed, 3,851 building permits issued and 2,396 residences under construction, with 515 lots sold so far and 44% of them going to developers, foreign interests and private equity investors. In Pacific Palisades, the Palisadian-Post's Pali Rebuild Map counted 50 completed new homes with certificates of occupancy as of October 8, 2026, plus 1,317 building permits issued and 1,126 primary structures under construction. A review of public permit records by the construction-data firm Builtie, read October 20, 2026, found 4,354 properties in Los Angeles County's fire recovery records for Altadena, Pasadena, Malibu and Topanga, with 2,065 under construction and 285 complete.

That means a buyer looking in these areas today can find three very different things for sale: an empty burned lot, a freshly rebuilt home, or a house that survived the fire. Each one needs different homework. At Choice of America, we are getting the same questions again and again: "Can I get a deal on a lot?" "How do I know a rebuilt house was done right?" "Is the soil safe?" This guide walks through the market numbers, the special legal rules in fire ZIP codes, and a step-by-step plan.

The market snapshot (September 2026, Realtor.com)

Realtor.com's latest county data (September 2026; October data had not been released as of this writing) shows Los Angeles County's median listing price at $950,000, down 4.5% from a year earlier and down 1.6% from August. The median listing spent 56 days on the market, 15.9% of listings had a price cut (Realtor.com's price_reduced_share), and there were 15,374 active listings, up 4.1% from September 2025. Sellers added 5,670 new listings during the month, and 4,984 listings were pending.

Here is how the fire-affected ZIP codes compare:

Source: Realtor.com Residential Data, county and ZIP core metrics, September 2026. Two Pasadena ZIP codes in the Eaton fire area (91104 and 91107) are left out because Realtor.com flagged their September data for quality. These are figures for residential listings and do not tell you what a burned lot is worth. Small ZIP codes swing a lot from month to month, and a ZIP median mixes burned streets with streets the fire never touched.

For lots, the best public numbers we found are older. Redfin reported that in the third quarter of 2025, the typical lot sold for $510,000 in Altadena, $1.6 million in Pacific Palisades and $1.3 million in Malibu, and that investors bought 44.3% of Altadena lots sold (27 of 61), 40.3% in the Palisades (48 of 119) and 44.2% in Malibu (19 of 43). Redfin's agent in the report said many Altadena lots were selling in the $500,000 to $600,000 range and that sellers were starting to cut prices. The community dashboard Altadata, using RentCast data, showed that 55.6% of active listings on destroyed or damaged Altadena parcels had been on the market more than 60 days at its latest refresh. Treat these as signposts, not current prices; your agent should pull the most recent closed lot sales on the same streets.

The payment math at today's rates

Freddie Mac's Primary Mortgage Market Survey put the average 30-year fixed rate at 7.32% for the week of October 22, 2026, down from 7.40% the two weeks before. That is the latest weekly reading as of this writing; the next one is due October 29.

Principal and interest (P&I) on a 30-year fixed loan at 7.32%, with 20% down:

The formula, so you can run your own price: monthly P&I = L × r ÷ (1 − (1 + r)^−360), where L is the loan amount (price minus down payment) and r is the annual rate divided by 12 (0.0732 ÷ 12 = 0.0061). Example for the county median: $760,000 × 0.0061 ÷ (1 − 1.0061^−360) ≈ $5,221 a month.

Property tax uses California's 1% base rate under Proposition 13; your real bill will be higher once local bonds and special assessments are added. These figures leave out homeowners insurance, HOA dues and maintenance, and most loans at these prices are jumbo loans. The PMMS rate is a national average for a standard home purchase. A loan to buy land, or a construction loan to build, usually has different terms, often a larger down payment and a higher rate, so get real quotes before you count on any number above for a lot.

Three things for sale, three different risks

1. A burned lot. You are buying land, a permit history (or none), and a construction project. The price is lower, but you take on the cost and time of building, plus questions about soil, utilities and what the rules let you build.

2. A rebuilt home. You are buying a brand-new house in a neighborhood that may still be a construction zone for years. The big questions are whether it was permitted and finaled, who built it, what warranties come with it, and what insurance will cost.

3. A home that survived. You are buying an older house next to burn scars. The questions are smoke and ash damage, lead in the soil (Los Angeles County Public Health found unusually high soil lead levels in some areas downwind of and just outside the Eaton burn area), and how long the street will be noisy with construction.

The legal rule you need to know first: no unsolicited offers

You cannot simply knock on a door or mail a letter offering to buy a burned property in most of these ZIP codes. Assembly Bill 851, signed by Governor Newsom and effective October 10, 2025, added Civil Code Section 2079.26. Until January 1, 2027 (unless the Legislature extends it), it bans unsolicited offers to buy fire-affected property in ZIP codes 90049, 90263, 90265, 90272, 90290, 90402, 91001, 91024, 91103, 91104, 91106, 91107, 91301, 91302 and 91320, unless the owner has already marketed the property for sale.

When a sale does happen in those ZIP codes before that date, the buyer and seller need a written statement that the deal came from the owner marketing the property, not from an unsolicited offer, and that statement is attached to the deed. A real estate licensee who makes an unsolicited offer can face review by the California Department of Real Estate, and the Attorney General or local prosecutors can sue a buyer who makes one.

Step 1: Decide which of the three you actually want

How to do it:

• Write down your move-in date. If you need to live in the home within a year, a lot is almost certainly the wrong choice; the Pali Rebuild Map's author found that about nine months after drywall to finish a custom home is a reasonable expectation, and that comes after design, permitting, foundation and framing.
• Write down your all-in budget, not just the purchase price. For a lot, that is land plus design, permits, utilities, construction, landscaping and a cushion.
• Be honest about your tolerance for a construction zone. Even a finished house may sit next to active job sites for several years.

Step 2: Make sure you're buying the right way

How to do it:

• Only pursue properties that are listed or otherwise marketed by the owner. Don't send letters, texts or "we buy lots" offers in the covered ZIP codes.
• Expect to sign the AB 851 written statement at closing, and make sure your escrow officer knows the property is in a covered ZIP code.
• If you are a neighbor or family friend who wants to help an owner who hasn't listed, the owner has to start the conversation by putting the property up for sale.

Step 3: Pull the permit and debris-removal history

How to do it:

• For unincorporated areas such as Altadena, Malibu-area county land and Topanga, check Los Angeles County's Permitting Progress Dashboard at recovery.lacounty.gov and ask the seller for every application and permit number. The county tracks each case through steps from application received to construction completed.
• For Pacific Palisades (City of Los Angeles), look up the address in the city's building permit records and on the Pali Rebuild Map.
• Ask whether debris removal was completed through the government program, including removal of the surface soil under the burned structures, and get the paperwork.
• If the seller already has approved plans or an issued permit, ask in writing whether the plans can be transferred to you, who owns the architect's drawings, and how much time is left before the permit expires. Approved plans can save months, but only if you can legally use them.

Step 4: Check the soil before you commit

The federal cleanup crews removed ash, debris and about a 6-inch layer of topsoil, but FEMA and the U.S. Army Corps of Engineers told the Los Angeles Times in early 2025 that they would not test the soil after cleanup.

How to do it:

• Ask the seller for any soil test results. If there are none, make your offer contingent on testing.
• Los Angeles County Public Health runs a free lead-in-soil testing program for properties within, downwind of and just outside the Eaton and Palisades burn areas. Owners collect a composite sample from four spots in the yard and drop it off (Eaton samples at the Altadena One-Stop Permit Center, 464 W. Woodbury Road, Suite 210; Palisades samples at the Palisades Recovery Coalition, 15233 La Cruz Drive). Results come by email in 7 to 10 business days.
• The California Department of Toxic Substances Control (DTSC) recommends testing after debris and surface soil are removed for a total loss, and prioritizing metals such as lead. For a bigger purchase, hire a state-licensed environmental professional to follow DTSC's soil sampling plan.

Step 5: Find out what you're allowed to build, and how fast

How to do it:

• Ask the planning department whether the lot qualifies for a "like-for-like" rebuild or needs full review as new construction. Los Angeles County publishes minimum submittal requirements for both.
• Ask whether a soils report is required. The county says a conventional raised or slab-on-grade foundation with continuous footings usually doesn't need one, but caissons or deep piles, basement walls and geologic hazards do. Hillside lots in both fire areas often fall into the second group.
• Don't assume you can split the lot. Governor Newsom's Executive Order N-32-25 gave local governments stronger authority to limit Senate Bill 9 lot splits and duplexes in high fire hazard areas within the LA County burn scars, so check the current local rule before you pay for "development potential."
• Ask about utilities. ABC7 reported that Palisades Fire survivors say a Los Angeles Department of Water and Power line is delaying rebuilding, so call the utility early about when power and gas can be connected.
• Use the free help. The Altadena One-Stop Permit Center (464 W. Woodbury Road, Suite 210, 626-424-6743) and the Calabasas One-Stop Permit Center for the Palisades fire (27001 Agoura Road, Suite 250, 818-880-4150) offer rebuild consultations.

Step 6: Run the full numbers for a lot

How to do it:

• Start with the lot price, then add design and engineering, permit fees, utility connections, construction, landscaping and a contingency for surprises.
• Get at least two written bids from state-licensed contractors and check each license with the Contractors State License Board. Ask each bidder for addresses of homes they have finished in the burn areas.
• Talk to a lender about a construction loan, or a construction-to-permanent loan that becomes a regular mortgage when the house is done. Ask about the down payment, the rate while you build, how money is released to the builder, and what happens if the build runs late.
• Budget for rent or your current mortgage during construction. Using the formula above, a regular 30-year loan at 7.32% costs about $6,869 a month per $1 million borrowed, before taxes and insurance, so every extra month of building and paying for housing elsewhere adds up.
• Compare the total with the price of a finished rebuilt home nearby. If they're close, the finished house may be the better deal.

Step 7: Vet a rebuilt home like the new construction it is

How to do it:

• Ask for the final inspection sign-off and certificate of occupancy. If the house isn't finaled yet, make closing depend on it.
• Get the builder's name and license number, the written warranty, and the transferable manufacturer warranties for the roof, windows and systems.
• Ask for a list of the fire-resistant features: the LA Times described one rebuilt Altadena home with fire-resistant building materials and windows and fire-hardened eaves. Have your inspector confirm what was actually installed.
• Hire your own home inspector anyway. A new house can still have mistakes, especially when hundreds of homes are going up at once.

Step 8: Get insurance quotes before you remove contingencies

How to do it:

• Ask the seller for their current insurance carrier and premium, and get your own quotes during the inspection period, not after.
• Ask agents whether fire-hardening features or a new roof lower the premium.
• If standard carriers won't write the policy, ask about the California FAIR Plan plus a "difference in conditions" policy, and add both premiums to your monthly budget.

Step 9: Negotiate with the data

How to do it:

• Look at days on market. If a lot has sat for more than 60 days, as most of Altadata's tracked Altadena listings had, the seller may take less.
• Use what you found in Steps 3 through 8. A missing permit, a needed soils report, high lead results, or a long utility wait are all reasons to ask for a lower price or a credit.
• Remember that you're often negotiating with a family who lost a home. Be fair and clear; it tends to get the deal done.

Step 10: Know how your property tax will work

How to do it:

• When you buy, the county reassesses the property at your purchase price. When you build, the new construction is added to the assessment, so a lot plus a new house will be taxed on both.
• Property tax relief programs that let fire victims keep their old tax base are tied to the owners who lost homes. Don't assume a seller's low tax bill carries over to you; ask the county assessor's office to estimate your bill before you buy.

Mistakes to avoid

• Making or responding to an unsolicited offer in a covered ZIP code before January 1, 2027.
• Paying extra for "lot split potential" without confirming the local SB 9 rules.
• Skipping soil testing because the debris was removed.
• Assuming a seller's approved plans and permits come with the land.
• Budgeting only for the build, and forgetting months of rent and loan payments while you wait.
• Buying a "finished" home that has not passed its final inspection.

Your checklist

1. Choose: lot, rebuilt home or surviving home.
2. Confirm the property is marketed for sale, and plan for the AB 851 statement at closing.
3. Collect permit numbers, plans, debris-removal records and any soil tests.
4. Test the soil for lead (free county program) or hire an environmental professional.
5. Confirm with planning what you can build, whether you need a soils report, and when utilities can connect.
6. Get two licensed contractor bids and a construction loan quote.
7. For a rebuilt home, get the certificate of occupancy and warranties, and hire an inspector.
8. Get insurance quotes before removing contingencies.
9. Negotiate using days on market and anything your due diligence found.
10. Ask the assessor to estimate your new property tax.

What this means day to day

Living in Altadena or the Palisades right now means trucks, power tools and fences on many blocks, with rain adding worries about mud and runoff on hillsides. It also means neighbors coming home: the Times described rabbits, a bobcat and blooming gardens on a block that's slowly filling back in. Buyers who do the homework can get into communities that are hard to enter in normal times, and help them come back. Buyers who skip it can end up with a lot they can't build on, or a house that costs far more to insure than they expected.

If you're thinking about buying a lot, a rebuilt home or a surviving home in Los Angeles County's fire areas, Choice of America can help you pull the permit history, run the numbers and line up the right inspectors and lenders before you write an offer.

Choice of America | Dr. Hamid Rowshan, DRE #02004794 | Company DRE #02240008

Call or text 833-THIS-BROKER (833-842-7465)

https://choiceofamerica.com/ | Los Angeles County homes: https://choiceofamerica.com/los-angeles-county-real-estate.html

This article is general information, not legal, tax, environmental or lending advice. Rules and programs change; confirm details with the agencies listed below, a licensed attorney, a tax professional and your lender before you buy. Payment figures are estimates based on the Freddie Mac weekly average rate and are not a loan offer.

Sources:

• Realtor.com Residential Data, county and ZIP core metrics (September 2026): https://www.realtor.com/research/data/
• Freddie Mac Primary Mortgage Market Survey (week of October 22, 2026): https://www.freddiemac.com/pmms ; FRED series MORTGAGE30US: https://fred.stlouisfed.org/series/MORTGAGE30US
• Los Angeles Times, "On one Altadena block destroyed by Eaton fire, a return, an exit and lessons in resilience" (Oct. 24, 2026): https://www.latimes.com/california/story/2026-10-24/on-one-altadena-block-destroyed-by-eaton-fire-return-exit-lessons-in-resilience
• Palisadian-Post, "Pali Rebuild Map Shows 50 New Homes Completed" (Oct. 9, 2026): https://palipost.com/pali-rebuild-map-shows-50-new-homes-completed/
• Builtie, "What the LA Fire Rebuild Permit Record Shows: Palisades and Altadena, October 2026" (Oct. 24, 2026): https://www.builtie.com/la-fire-rebuild-permit-record/
• Los Angeles County Permitting Progress Dashboard: https://recovery.lacounty.gov/rebuilding/permitting-progress-dashboard/
• Los Angeles County One-Stop Permit Centers: https://recovery.lacounty.gov/rebuilding/one-stop-permit-centers/
• Los Angeles County Recovers FAQ (soils reports, foundations): https://recover.lacounty.gov/faq/
• Los Angeles County Eaton and Palisades Fire Rebuild Minimum Residential Submittal Requirements: https://planning.lacounty.gov/wp-content/uploads/2025/04/Fire-Rebuild-Min-Submittal_Final.pdf
• Los Angeles County Public Health, Fire Soil Testing Program FAQ: http://publichealth.lacounty.gov/media/wildfire-soil-testing/docs/FAQ.pdf
• California DTSC, Residential Soil Evaluation Guidance: https://intl.dtsc.ca.gov/wp-content/uploads/sites/31/2025/08/Soil-Testing-Considerations.pdf
• Los Angeles Times, "Communities are rebuilding after L.A. fires despite lack of soil testing" (Mar. 27, 2025): https://www.latimes.com/environment/story/2025-03-27/rebuilding-without-soil-testing
• AB 851 (Civil Code 2079.26), California Legislative Information: https://leginfo.legislature.ca.gov/faces/billCompareClient.xhtml?bill_id=202520260AB851&showamends=false
• first tuesday Journal, "No more unsolicited offers on homes lost in LA wildfires": https://journal.firsttuesday.us/no-more-unsolicited-offers-of-homes-lost-in-la-wildfires/99558/
• Office of Governor Newsom, executive orders list including N-32-25 (Jan. 6, 2026): https://www.gov.ca.gov/2026/01/06/governor-newsom-issues-executive-order-expanding-protections-for-survivors-and-support-for-businesses/
• Santa Monica Daily Press on Redfin's burn-area lot report: https://www.smdp.com/investors-snap-up-fire-zone-properties-and-housing-recovery-struggles/
• LA Local, "Investors are buying close to half the empty lots in LA burn zones": https://thelalocal.org/housing/investors-are-buying-close-to-half-the-empty-lots-in-la-burn-zones-report-says/
• Altadata, Altadena rebuilding dashboard: https://altadata.org/
• ABC7 Los Angeles, "Palisades Fire survivors say LADWP power line is delaying rebuilding effort": https://abc7.com/post/palisades-fire-survivors-say-ladwp-power-line-is-delaying-rebuilding-effort/19901426/
• California Contractors State License Board license check: https://www.cslb.ca.gov/
• CBS Los Angeles, "Rain creates concerns as Altadena continues to rebuild after Eaton Fire": https://www.cbsnews.com/losangeles/news/rain-creates-concerns-as-altadena-continues-to-rebuild-after-eaton-fire/