Six months following California’s most destructive wildfire, recovery efforts have begun. Properties are changing ownership, developers are making their moves, permits are being granted, and new homes are being built. However, the pace remains sluggish for many residents.

“This process requires time, money, and patience,” explained real estate agent Laura Alfano, an expert in Malibu and Pacific Palisades real estate. “We are seeing a mix of developers, investors, and families with long-standing wealth making purchases. This includes not just smoke-damaged homes, but also the land itself.”

Ross Greenberg, who lost his home in the Palisades fire, received approval for his rebuilding permits in early June, yet Los Angeles County has not allowed construction to commence.

“I’ve paid over $12,000 in my permit fees right now just to get my process moving,” Greenberg said.

Besides battling with regulations, many residents are more focused on their fight with insurance companies.

A person walks amid the destruction left behind by the Palisades Fire in the Pacific Palisades neighborhood of Los Angeles, Jan. 9, 2025.  (AP Photo/Jae C. Hong)

Before the fires spread across southern California, State Farm dropped 1,600 policies in the Palisades last July. The insurance company faces lawsuits from homeowners who claim they were left “grossly underinsured.” With poor support by insurance providers, many residents solely rely on the California FAIR Plan, which may barely cover the cost of foundational and septic tank development in places like Malibu, which lost 600 homes in the fire, including 300 along the beach.

“You’re going to spend two to three million dollars on just your foundation, your septic system and your seawall,” said Don Schmitz, president and principal planner of real estate consulting company Schmitz & Associates. “And that’s before you put up the very first stick to build the actual house.”