Rebuilders Face Slow Recovery Two Years After Los Angeles Fires

Sean Burton, chief executive of Century City-based developer Cityview, launched Genesis Builders last year to help families rebuild in Altadena. The firm offers preapproved architectural templates and guarantees a fixed price and a one-year construction schedule. Burton said the recovery has been slower than anticipated nearly two years after the January 2025 firestorms.

County data shows that only 254 new homes have been completed in Altadena, where the Eaton Fire destroyed more than 9,419 structures. In the Palisades, the fire destroyed 6,822 structures, and only 62 new homes had been completed as of October, according to Kevin Pazirandeh’s Pali Rebuild Map. Pazirandeh predicts a spike in completions in the coming months because more than 1,000 rebuilds started in the Palisades during the summer.

The bottlenecks in the recovery have shifted from permits to financing and utilities. Steve Schlageter, chief executive of Thomas James Homes, reported that the city now issues Palisades permits in less than two months, a significant drop from the six to seven months required before the fires. Trent Klatte, chief executive of West End Construction, noted that the county has moved quickly on permits. However, some homeowners who finished rebuilding could not move in because the Los Angeles Department of Water and Power had not restored power, according to an ABC7 report. The utility’s interim general manager stated that staff were added to the Palisades to speed up the process.

Financing remains the largest obstacle for many survivors. A May survey by the nonprofit Department of Angels found that nearly half of fire survivors have lost or will soon lose insurance coverage for temporary housing. Two-thirds of survivors remain displaced. Burton said many clients were underinsured on homes that had been in their families for generations. Klatte noted that one prospective client waited more than two months for an insurance adjuster to respond to an estimate submitted at the end of July. He said it is difficult for clients to start planning without a confirmed budget.

Some builders are addressing these uncertainties by offering fixed prices and guaranteed timelines. Genesis Builders is currently working with 40 families and had 16 homes under construction as of mid-September. Burton said these homes cost between $700,000 and $1 million. Thomas James Homes, which received the first certificate of occupancy for a rebuilt Palisades home in November 2025, is working with more than 40 customers in the Palisades. Schlageter said the company also guarantees price and timing.

While some residents rebuild, others are selling their lots. Redfin data shows that investors bought about 40% of the vacant lots sold in the Palisades, Altadena, and Malibu in the third quarter of last year. The community group Altadena Not for Sale estimated that investors purchased about 60% of Altadena lot sales. Burton said studies of past disasters, such as the 2018 Camp Fire in Paradise, show that more than a quarter of owners never rebuild. He expects a similar outcome in Altadena.

Investor activity has also triggered political debate. Governor Gavin Newsom signed SB 1090 in September, which pauses high-density development proposed after October 1 in Altadena for three years. Developer Kensington Homes and other builders filed lawsuits against the county over rejected applications. Meanwhile, commercial projects are moving faster. Developer Rick Caruso reopened Palisades Village on August 15 after spending $100 million on restoration. The shopping plaza is one of the few areas showing signs of normalcy before Sunset Boulevard transitions into rows of demolished lots.

The reconstruction effort has become a campaign issue. City Councilmember Nithya Raman, who is challenging Mayor Karen Bass in a runoff this week, accused Bass of failing to appoint an official to oversee reconstruction. Bass blamed insurers and lenders for the slow pace. On Monday, Bass received an endorsement from Caruso, her former rival in the 2022 mayoral election. In an ABC7 interview, Caruso said Bass has worked hard to learn from the mistakes of the past.