Vacant lots in Altadena, Palisades areas are piling up, as investors move in, according to Redfin report

Investors in Altadena and the Palisades area bought two of every five vacant lots sold in the third quarter of 2025, according to a Redfin News report of county data.

The report, released Dec. 30 by the online real estate listing site, was a snapshot of a time, one year after both fires broke out, when residents are pausing on whether to rebuild, given growing financial uncertainty.

“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,” said Redfin Premier real estate agent Sylva Khayalian, referencing the situation in Altadena.

In the 91001 zip code (Altadena), investors, according to the report, bought 27 of the 61 lots (44.3%) that sold.

In the 90265 zip code (Malibu), investors bought 19 of the 43 lots that sold (44.2%), according to Redfin more than double the 21.4% share of a year earlier.

Redfin’s analysis was based on investor lot purchases in county records. Roughly 80% of those purchases indicated there was once a home on the property, according to the report, noting that investor data goes through the third quarter of 2025.

The report chronicles a moment in which many investors are “making lowball offers” on lots, planning to flip the properties once a home is built, making big profits on new houses, Khayalian said.

The report also notes that it’s not uncommon that investors buy and develop land after natural disasters. But unsold land is also piling up on the market, the report states, adding that in multpile zip codes, there are for more listings available – of vacant lots and single-family homes – than sales.

In Pacific Palisades for example, there were 309 lot listings during the three months ending Nov. 30, up from just seven a year earlier. In Altadena, lot listings jumped to 225 from two over the same period, and in Malibu, they rose to 214 from 125, according to the report.

Some of that could be because properties in fire-hit areas have been hard to value because the surrounding infrastructure has been decimated, according to the report.

But there are also the costs of moving back, which have been at issue from the beginning of the recovery.

For months, fire survivors across Los Angeles County, have been vocal about their experiences with insurance delays, denials and other price hikes one year after the Eaton fires ravaged through Altadena and Pasadena neighborhoods. There’s a looming fear of mass displacement amongst survivors.

According to Eaton Fire Survivors Network Executive Director Joy Chen, eight out of 10 Eaton survivors are still displaced and insurance coverage for housing is expected to run out for many families in the coming months.

“The most important thing someone looking to buy in this area can do is figure out if they can afford insurance,” Redfin Premier real estate agent Sylva Khayalian said. “Mortgage lenders in California require homebuyers to have fire coverage, and premiums have gone up by 35% to 50% since the fires.”

Now, after months of financial uncertainty, survivors are now running out of options.

According to Chen, without temporary financial support for survivors’ immediate housing, Altadena and Pasadena survivors are often left with the difficult decision to choose between spending more or selling their homes.

According to the Redfin analysis, between March 2024 and Nov. 2025, sales of single-family homes in Altadena rose from a “record low” 26 to 58. However, it should be noted that sales were down from 67 a year earlier.

Some survivors have turned to selling their lots to investors for a fraction of the cost.

“It is heartbreaking to see people who planned to live in Altadena for the rest of their lives being pushed to sell because they simply cannot afford to hold on any longer,” Chen said. “When investors step in at this moment, it is not because communities want to sell, but because financial pressure leaves families with no real choice.”

The day-to-day reality is much more visceral for survivors.

According to Compass real estate agent Vance Weisbruch, both he and his clients receive frequent, if not daily, calls from investors looking to buy their lots for “50 cents on the dollar.”

Much like many of his clients, Weisbruch also lost his home in the Eaton fire. Of the 16 homes on his entire block, only one house survived; it wasn’t his.

“It was like a free-for-all,” Compass real estate agent Vance Weisbruch said, referencing the time after lots started to enter the housing market.

And much like Weisbruch, Altadena resident Martin Gordon also said he receives calls from investors – around three calls per day, sometimes one to five calls per day and up to ten calls weekly.

He said the calls feel “filthy and horrible,” and targeting “easy prey.”

According to him, many investors have taken interest in his street, McNally Ave.

Gordon has lived in his home for more than three decades, with many of his neighbors having lived in their homes longer than him. You can see the Los Angeles skyline and the Rose Bowl clearly.

“It’s primo real estate,” Gordon said.

Maybe months before, Gordon wouldn’t have been so sure about selling his lot. But now, he’s considering it.

Many Altadena lots are selling in the $500,000 to $600,000 range, with the typical lot sold in Altadena during the three months ending November 2025 selling for $510,000.

“If there was still a home on them, they might sell for $1 million or more,” Khayalian said.

Saving up money to start the occupancy permit process for an Accessory Dwelling Unit (ADU) in January is costly, given construction costs for potential existing damages and upkeep on rent, mortgages or insurance. It runs the risk of taking away the needed funds to start the occupancy permit process for Gordon’s house.

“The homes for sale that didn’t burn are only attracting offers if they’re priced reasonably and the owner has remediated ash and smoke damage,” Khayalian said.

Not to mention, the timeline of starting a permit.

It took Weisbruch about two and a half months to do a variance and another four to six weeks for the structural engineer to look at plans. There’s an additional two to four weeks for the County to review the plans, and he estimates an additional three and a half months before any construction can start.

Many of Gordon’s neighbors, albeit happy, had started their occupancy permit processes almost a year ago.

Like many Altadena residents, Gordon is concerned about having the time or the money to continue.

“In Altadena, there’s a real push around the idea that the community is not for sale,” Khayalian said. “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.”