Malibu a Buyer’s Market as Homeowners Abandon Rebuild

Rebuilding efforts in Malibu nine months after the deadly Palisades fire have barely gotten underway.

While owners in the Pacific Palisades next door and Altadena across town have gotten hundreds of rebuild permits, the City of Malibu has granted just a handful, the Los Angeles Times reported. As a result, burned-out lots across the seaside enclave remain fenced off and overgrown.

The City of Los Angeles handles most permits in the Palisades, issuing 833 so far, or about 42 percent of all applications received, according to the state’s rebuilding dashboard. Los Angeles County, which handles most permits in Altadena, has issued 601, or about 26 percent of the total applications received.

By contrast, the City of Malibu has issued a paltry five permits, making up approximately 3 percent of the total applications received.

“It’s depressing,” Abe Roy, a Malibu resident and professional builder, told the Times. “If this current pace continues, rebuilding will take way longer than a decade.” Roy was appointed as the city’s first Rebuild Ambassador in May but publicly resigned last month.

“Our work is far from done,” Roy told the Malibu City Council as he resigned, according to the Times. “Two permits issued in nearly 10 months is an abomination by any standard.”

While many Malibu residents want to stay, others are listing their homes for sale and looking to start a new life elsewhere. About 75 lots in Malibu have sold since the fire, but sales are slowing, opening up a buyer’s market. Of the 160 lots in Malibu listed this year that are still on the market, 47 have gotten a price cut.

“Supply is exceeding demand, and lots are selling anywhere from a 20 to 60 percent discount,” Roy said. “That’s a premonition for a freefall.”

“Remodeling a kitchen or bathroom is onerous for most people. But building a house from the ground up is almost impossible,” he added. “After a while, you raise your hand and say, ‘I don’t know how long I can be on this treadmill.’”

The city has purportedly been sending applications back to residents to remedy necessary corrections, further delaying rebuilding efforts for owners. As a result, many are giving up entirely and opting to sell.

Malibu’s unique mountainous geography and rocky geology present even more issues in rebuilding endeavors. Of the roughly 720 homes in Malibu burned by the Palisades fire, 50 percent of them were on the water and 30 percent were on steep slopes, according to Yolanda Bundy, community development director at the Malibu Rebuild Center, the one-stop shop set up by the City of Malibu in the wake of the fires to help both homeowners and contractors through the rebuilding process.

“These homes require septic systems, sea walls, retaining walls and complex foundations. Those come with restrictions,” Bundy said.

One of the biggest factors in applications slowing to a crawl is architectural plans missing necessary notes and numbers. While only a handful of building permits have been issued, about half of the nearly 170 applications have already passed through the planning phase but are still waiting to advance through the building and safety review process, Bundy told the Times.

“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.”

— Chris Malone Méndez