As the first anniversary of the Los Angeles County wildfires approaches, two new data reports offer an overview of the catastrophe’s impact on the local housing market.
Redfin reports real estate investors are buying roughly 40% of the land selling in areas impacted by last January’s inferno. Within the 90272 ZIP code (Pacific Palisades), investors purchased 48 of the 119 lots (40.3%) that sold in the third quarter – one year earlier, they bought none.
In the 91001 ZIP code (Altadena), investors bought 27 of the 61 lots (44.3%) that sold. That also compares with zero lot purchases a year earlier from investors and other buyers. And in the 90265 ZIP code (Malibu), investors bought 19 of the 43 lots that sold (44.2%), which is more than double the 21.4% share of a year earlier.
“In Altadena, there’s a real push around the idea that the community is not for sale,” said Redfin Premier real estate agent Sylva Khayalian. “People who plan to stay are encouraging others not to sell because of how much it could change the neighborhood—but for some residents, selling is the only option that makes financial sense.”
Separately, Zillow (NASDAQ: Z, ZG), reports home values near the fire zones have largely followed Los Angeles trends, $46 billion in residential housing value across 19,605 homes within the Palisades and Eaton fire perimeters where the median home value was $1.95 million as of December 2024.
Before containment, the fires burned through 40,000 acres, threatening roughly 20,000 homes — including multifamily units. Reports show that more than 11,000 single-family homes alone were destroyed. One year later, home values near areas affected by the fires are little changed, while inventory and rents have seen some lasting impacts.
Zillow noted new listings within five miles of the fire perimeters surged 194% in January compared with one month earlier — more than double the 91% increase seen more than 20 miles from the fires — and remained 45% above pre-fire levels during last month. Active inventory rose 50.4% between December 2024 and November 2025, outpacing inventory growth elsewhere in the metro — inventory is up 34.8% more than 20 miles from the fires over the same period.
In the rental market, median list rents showed little immediate disruption near the fire perimeters, dipping just 0.1% from December 2024 to January 2025. Zillow noted that rents within five miles rose 3.4% through November, compared with a 1.7% increase beyond 20 miles.
“The fires cut through some of the Los Angeles area’s most valuable homes, where the median value approached $2 million,” said Orphe Divounguy, senior economist at Zillow. “While home values nearby have dipped a bit, in line with broader Los Angeles trends, the most evident impact was on supply. The sharp increase in listings just outside the burn zones likely reflects a mix of homeowners accelerating planned sales or owners of second homes deciding to list in response to the sudden shift in local demand. Displaced homeowners who were forced to become renters and a shift in tenure choice appear to have contributed to the increase in rents relative to prices.”
