Southern California has been ravaged by devastating wildfires, leaving thousands of residents facing heartbreaking decisions about their futures. Josh Altman, a well-known real estate expert and former star of “Million Dollar Listing,” recently made a startling prediction: up to 70% of Pacific Palisades residents may not return to rebuild their homes.
According to Altman, the issue isn’t that these residents don’t want to come back. Instead, they’re faced with overwhelming financial and logistical obstacles that make rebuilding almost impossible.
The Rising Costs of Rebuilding
For most wildfire victims, the dream of returning to their homes in places like Pacific Palisades and Malibu is being crushed by skyrocketing construction costs. Altman explained that rebuilding in these areas now costs roughly $1,000 per square foot—a staggering expense for families who have already lost so much.
“They’re not going to return because it’s simple math,” Altman said during an interview on “FOX Business Live.” He highlighted that many victims are severely underinsured, meaning their insurance policies don’t come close to covering the actual costs of reconstruction.
The financial strain doesn’t end with construction costs. Securing a reliable construction crew is another challenge, especially when thousands of homes, schools, and businesses across Southern California need to be rebuilt at the same time. With over 16,000 structures destroyed in this disaster, competition for resources is fierce.
The Toll of the Wildfires
The recent wildfires in Southern California have been devastating on every level. Since January 7, more than 50,000 acres have been scorched, 28 lives have been lost, and tens of thousands of homes and buildings have been destroyed. Financially, the damage is estimated to be around $50 billion, according to reports from AccuWeather and JPMorgan.
President Donald Trump recently declared a national emergency after visiting the affected areas. During his visit, he met with residents who had lost their homes and toured the destruction firsthand. While federal aid has been pledged, many residents worry it won’t be enough to cover the long-term costs of rebuilding.
Insurance Companies Pulling Back
California’s insurance crisis is another major roadblock for wildfire victims hoping to rebuild. In recent years, several insurance companies have stopped writing new policies in the state or significantly reduced their coverage options, especially in wildfire-prone areas. For those who managed to maintain their policies, many are finding their coverage inadequate for the rising costs of construction.
“The insurance is just not enough,” Altman emphasized. He noted that without substantial insurance payouts, most families simply won’t have the financial means to rebuild their homes. This leaves many residents with no choice but to relocate, even though they desperately want to return.
Red Tape: The Hidden Obstacle
In addition to financial challenges, bureaucratic red tape makes rebuilding in California a slow and frustrating process. Altman pointed out that it can take over a year just to secure permits for construction. For homes in coastal areas like Malibu, the process becomes even more complicated due to strict regulations from the Coastal Commission, which can delay projects by another two years.
“The process of building a home in California is wrapped in red tape,” Altman said. “It’s absolutely impossible to rebuild quickly under the current system.” He called on California Governor Gavin Newsom to take action by cutting through the bureaucratic barriers that slow down rebuilding efforts.
Altman also urged the state to remove policies that place additional financial burdens on wildfire victims. He specifically called out the mansion tax and wildlife ordinances, arguing that they should be lifted for those who lost their homes in the fires. “We need to work as a team to rebuild and strengthen Los Angeles,” he said.
Relief Efforts and Federal Aid
Governor Newsom has already signed off on a $2.5 billion relief package aimed at helping wildfire victims recover. While this is a step in the right direction, Altman believes it’s not enough. He hopes that President Trump’s visit to the affected areas will lead to more federal funding and support.
“You have to see it to understand it,” Altman said. “Walking through the devastation in the Palisades and Malibu is far worse in person than you can imagine. Hopefully, this will open up more funding on the federal level.”
A Long Road Ahead
The path to recovery for Southern California’s wildfire victims is filled with challenges. Financial strain, insurance shortfalls, and bureaucratic delays are just a few of the obstacles standing in the way of rebuilding. While relief efforts and federal aid will undoubtedly help, they may not be enough to bring back the thousands of families who have been displaced.
Josh Altman’s plea for action highlights the urgent need for systemic changes to help wildfire victims recover. By reducing red tape, increasing insurance support, and providing more financial aid, California can give its residents a fighting chance to rebuild their homes and communities. Until then, many families will continue to face an uncertain future.
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