“Million Dollar Listing” star Josh Altman predicts the Pacific Palisades will never be same because he doesn’t expect the majority of families will return.
In a new interview with Fox News Digital, Altman explained how the Los Angeles fires have affected residents of the Southern California town and what the future looks like.
He says his insurance agent told him that “90-plus percent of these people are heavily underinsured.”
Altman added, “I think 65-70% of the people do not go back to the Palisades or Malibu. I can just tell you from gauging all these calls that I’m getting where people are asking me to send them listings and talk to them about different neighborhoods.
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“Millions Dollar Listing” star Josh Altman said 90% of people who lost their homes in the Pacific Palisades fire are “heavily underinsured.” (Gabe Ginsberg/Getty Images)
“I’ve gotten calls from many people who just don’t want to be in fire areas anymore,” he continued. “You have to realize there have been multiple fires. … Is lightning going to strike twice? It’s going to happen again. … So, you know, I think it’s more that most people just not having the bandwidth to go through a build process is going to be more of a determining factor.
“I just don’t see people going back there. I see a whole new crowd without question. So, don’t get me wrong. The Palisades is and will continue to be one of the hottest areas in real estate, one of the safest long-term investments, one of the greatest places to live, location-wise, near the beach, near the water, but also, have an amazing town. It will all come back. It’s just going to be a totally new crowd, in my opinion.”
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Altman predicts the majority of families won’t return to the Pacific Palisades after the LA wildfire destruction. (David Hume Kennerly/Getty Images)
Additionally, Altman said people are “fed up” with the drama with various insurance policies.
“The other thing that I am seeing a lot of … is a lot of people who are fed up with what’s going on with the [insurance] policies that can’t leave California are talking about Orange County,” Altman said.
“There’s a moratorium right now on insurance for any house within a 35-mile radius of a fire line where the fire was, so that’s a lot of houses. So, there’s no insurance happening right now in those areas — zero. And then other people who are not in those areas, premiums are going to go up.
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As of Friday, the Pacific Palisades fire is 31% contained. It has burned 23,713 acres. (Tiffany Rose/Getty Images)
“With that being said, how are you going to rebuild a house at $1,000 a foot when you’re heavily underinsured?” he continued. “It’s not happening. So, you’re going to end up selling your land, you’re going to get your insurance company check and you’re going to try to move on with your life and try to take back as much as you possibly can.”
For those who choose to stay, Altman predicts it will take years to rebuild, and the cost will be astronomical.
“People have to understand the build process,” he shared. “Most people haven’t built homes in their lives, so they probably assume it’s a lot easier and a lot quicker than it is. … It’s a very difficult process, especially in a place like California. There’s no cutting corners. There’s no quick way to do it.
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Multiple fatalities have been reported since the Palisades Fire ignited Jan. 7. (Jill Connelly/Bloomberg via Getty Images)
“I don’t see these houses in places like the Palisades or Altadena — I don’t see that happening for three years,” he continued. “I think it’s going to be a year until everything is cleaned up. Then, they’re going to fast-forward the permit process, from what I’m hearing. So, instead of another year for permits, maybe it’s another couple months, but there’s no way around a build process of two years.
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“And then you have to take into account the fact that, do you want to live in a neighborhood where, if you did the perfect build, most people are not going to be that fast? So, you have to assume it’s going to be four to five years,” he added. “That’s the realistic timeline on this. And because of that, that’s going to be an issue, because that’s a very long time.”
As of Friday, the Palisades Fire was 31% contained and has burned 23,713 acres. Ten deaths have been reported from the Palisades Fire since it ignited Jan. 7, with more than 3,500 buildings destroyed or damaged.
