Fire Recovery: Two Years Later, Rebuilding Lags Behind Losses
County data shows only a small fraction of homes destroyed in the 2025 fires have been completed, with financing and utilities cited as primary obstacles.
By Lucas Sheridan ·
Two years after the January 2025 wildfires, the physical reconstruction of Los Angeles remains slow. In Altadena, where the Eaton Fire destroyed more than 9,419 structures, county records indicate that only 254 new homes have been completed. The Palisades Fire consumed 6,822 buildings. As of October, just 62 new homes in that area were finished, according to Kevin Pazirandeh’s Pali Rebuild Map.
Developers say the initial bottleneck of permitting has eased. Steve Schlageter, chief executive of Thomas James Homes, noted that the city of Los Angeles now issues Palisades permits in under two months, a reduction from the six to seven months required before the fires. Trent Klatte, chief executive of West End Construction, agreed that the county has moved quickly on approvals.
The delays have shifted to utilities and financing. Some homeowners in the Palisades who finished construction could not move in because the Los Angeles Department of Water and Power had not restored power. The utility’s interim general manager stated that staff were added to the area to accelerate the process. Insurance remains a major hurdle. A May survey of more than 2,000 survivors by the nonprofit Department of Angels found that nearly half had lost or were about to lose temporary housing coverage. Two-thirds of survivors remained displaced.
Sean Burton, chief executive of Cityview, said financing is the primary issue for his clients. Many were underinsured on homes held in families for generations. To address this, his firm launched Genesis Builders last year. The venture offers preapproved architectural templates to simplify the process. Burton said the company guarantees a fixed price and a one-year construction schedule for homes ranging from $700,000 to $1 million.
Genesis is currently working with 40 families and had 16 homes under construction as of mid-September. Thomas James Homes is also working with more than 40 Palisades customers. Schlageter said the company’s showcase home at 915 N. Kagawa St. received the first certificate of occupancy for a rebuilt Palisades home in November 2025.
Many owners are choosing to sell rather than rebuild. Redfin data shows that investors bought about 40% of the vacant lots sold in the Palisades, Altadena, and Malibu in the third quarter of 2025. The community group Altadena Not for Sale estimated the investor share of lot purchases in Altadena at about 60%. Burton expects a similar outcome to the 2018 Camp Fire in Paradise, where more than a quarter of owners never rebuilt.
Political attention has intensified. Gov. Gavin Newsom signed SB 1090 in September, placing a three-year pause on high-density development proposed after October 1 in Altadena. This law has triggered lawsuits from developers including Kensington Homes. Meanwhile, City Councilmember Nithya Raman accused Mayor Karen Bass of failing to appoint an official to oversee reconstruction. Bass responded by blaming insurers and lenders for the slow pace. On Monday, Bass received an endorsement from former rival Rick Caruso, who reopened Palisades Village in August after a $100 million restoration.
