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Nine months after the Palisades and Eaton fires, the choice of whether to sell or stay has bewildered many homeowners. In Malibu, the situation is even more dire as international buyers and developers have snapped up properties while residents struggle with costly regulations. You're reading the Essential California newsletter Sign up to start every day with California's most important stories. By continuing, you agree to our Terms of Service and our Privacy Policy. Enter email address Two brothers from New Zealand bought up $65 million worth of burned-out lots on the beach this year. Real estate agents who spoke with my colleague Jack Flemming said they’ve noticed a surge in interest from Europe, Canada and Asia. Now, locals are worried that the city may never fully get back on its feet and property values will suffer. And as rebuilds get costlier, locals told The Times they are concerned that by the time Malibu eventually gets back on its feet, it won’t feel the same. Lifelong residences will be replaced by Airbnbs, development groups and deep-pocketed foreign buyers with enough time and money to navigate the laborious permit process. A buyer’s market After roughly 720 Malibu homes burned in the Palisades fire, burned-out lots are sitting empty. Of the 160 lots listed this year that are still on the market, 47 have received a price cut. In the Big Rock neighborhood, a burned lot listed for $1.65 million in September, but that price has already been lowered twice. On Las Flores Beach, an oceanfront parcel hit the market for $3 million in April, but with no takers, relisted for $1.95 million in October. Roughly 75 lots have sold in Malibu since the fire. But as more homeowners decide to sell instead of rebuild, sales are slowing down — and a buyer’s market is emerging. Real estate agent Daniel Milstein told Jack that the buyer pool is limited to people who can afford to park their money for a while — three years, six years, maybe more. For those hoping to build a house right away, Malibu isn’t an option. “Malibu is stringent on permits. But that’s where the value is,” Milstein said. “It’s exclusive. And those that understand that value will be very happy with their property values down the road.” In the meantime, locals who lost homes are stuck in limbo. Slow pace of permits Rebuilding permits are more plentiful in Altadena and Pacific Palisades, the two communities hit hardest by the January fires. In the Palisades, 801 have been issued — around 43% of the total applications received, according to data from the state’s rebuilding dashboard. In Altadena, 577 permits have been issued — around 26% of the total applications received. So far, Malibu has only issued four, about 2% of the total applications received. That’s because Malibu locals face rebuild timelines significantly longer than their fellow rebuilding communities. FEMA’s updated flood elevation standards, which require many rebuilt oceanfront homes to sit higher above the sand, are one of the hurdles that several homeowners have run into over the past year. In addition to the FEMA height requirements, Malibu’s new septic standards are also creating a snag. It requires rebuilders to replace existing septic systems with on-site wastewater treatment systems, which can cost hundreds of thousands of dollars to install. Despite only four building permits being issued, the rebuild is further along than the number suggests, according to Yolanda Bundy, Malibu Rebuild Center’s community development director. Applications have to pass through two phases: planning and entitlement, and building and safety review. Bundy said half of the roughly 160 applications have passed through planning, but are still waiting to get through the building phase. “It’s an oversimplification to say that we’re not making any progress compared to L.A.,” Bundy said. “Families are frustrated, but I want every family to know we’re doing our best to get them home.” The week’s biggest stories Dodgers at the World Series The Dodgers won Game 2 of the World Series and are headed back to L.A. tied 1-1. Column: The Dodgers roared back to life to even the World Series. Now it’s time for their fans to roar at home. Meet Baby Shohei? These parents named their kids after Dodgers players. 25 Dodgers food and drink specials for the World Series. Here’s how to see the Dodgers in the World Series in person without a ticket. NBA gambling scandal 4 of the wildest NBA gambling allegations: Cheating poker chip trays, card-reading glasses, X-rays and the mob. The Lakers “unofficial coach” allegedly traded info on LeBron James’ injury in the NBA gambling scandal. “These dudes are stupid”: Charles Barkley and Shaquille O’Neal weigh in on the NBA gambling scandal. Crime and courts Santa Monica police are searching for a hit-run driver who plowed onto a busy Wilshire Boulevard on Friday night, killing two pedestrians and injuring two others. A SoCal pastor molested girls in a church basement for years. Now he’ll spend decades behind bars. Under a court order, UC publicly releases Trump administration’s $1.2-billion settlement proposal. L.A. County quietly paid out $2 million. At least one supervisor isn’t happy about it. What else is going on A big wave machine — by the sea — is rolling into El Segundo. Tarantula mating season is in full swing. Not everyone comes out alive. A mysterious road trip, a young girl in a wig: New clues emerge in Melodee Buzzard’s disappearance. Mayor Bass selects a longtime LAFD leader to head the embattled fire department. June Lockhart, TV’s favorite mom on “Lassie” and “Lost in Space,” has died at 100. Must-read California Drugs, crime and homelessness plague MacArthur Park. Can a multimillion-dollar fence rescue it? Los Angeles is moving ahead with a plan to build a $2.3 million fence around MacArthur Park. Will it help ease homelessness and drug use there? Other meaty reads The Latino population has nearly doubled. Here’s how it’s changed over the last 25 years. Column: As Trump blows up supposed narco boats, he uses an old, corrupt playbook on Latin America. Column: A doctor who walked L.A.’s perimeter has a prescription for everyone: Escape your own neighborhood. For your downtime Going out Travel and experiences: From bountiful green spaces, cuisine from various cultures and a vibrant nightlife scene, there’s so much to appreciate about Highland Park. Here’s a guide to the places that bring the suburb to life. Bakeries: A new panaderia in Santa Ana is a sweet addition to the neighborhood. Movies: In less-than-fun “Springsteen: Deliver Me From Nowhere,” a brooding Boss goes soul-plumbing. Staying in Books: The most banned book in America (about growing up LGBTQ+) is getting a new expanded edition. Biopics: The 9 most-lauded pop-music biopics in Oscars history: A “Springsteen”-inspired guide. Recipe: Here’s a recipe for black-eyed peas with maitake mushrooms. ✏️ Get our free daily crossword puzzle, sudoku, word search and jigsaw games. L.A. Affairs Get wrapped up in tantalizing stories about dating, relationships and marriage. Lifestyle My search for a three-way offered something more: true friendship I was on the hunt to have sex with two other people. What I ended up finding were three women — my new best friends — who loved me for me. Have a great day, from the Essential California team Jim Rainey, staff reporter Hugo Martín, assistant editor, fast break desk Kevinisha Walker, multiplatform editor Andrew Campa, Sunday writer Karim Doumar, head of newsletters How can we make this newsletter more useful? Send comments to essentialcalifornia@latimes.com. Check our top stories, topics and the latest articles on latimes.com.
