{"id":66276,"date":"2019-07-17T14:15:17","date_gmt":"2019-07-17T21:15:17","guid":{"rendered":"https:\/\/redfindevelop.wpengine.com\/blog\/?p=66276"},"modified":"2021-06-23T07:10:56","modified_gmt":"2021-06-23T14:10:56","slug":"housing-impact-from-malibu-woolsey-wildfire","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/news\/housing-impact-from-malibu-woolsey-wildfire\/","title":{"rendered":"After Last Year’s Malibu Wildfire, New Residents Face Higher Insurance Premiums, While Many Who Lost Homes are Moving Elsewhere"},"content":{"rendered":"

\"\"
\nHere\u2019s how the Malibu and Topanga housing markets have recovered, eight months after the Woolsey Fire.<\/span><\/em><\/p>\n

With summer heat in full swing, the threat of wildfire season returns. The 2018 wildfire season in particular was the deadliest and most destructive on record in California. Southern California\u2019s Woolsey Fire in particular blazed through Los Angeles and Ventura Counties last November, including popular coastal communities of <\/span>Malibu<\/span><\/a> and <\/span>Topanga<\/span><\/a>, <\/span>burning 96,949 acres and destroying and\/or damaging over 1,800 structures<\/span><\/a> in its wake.<\/span>
\nNow, fast approaching a year later, things are largely back to normal. Blissful views of the Pacific frame an idyllic scene that was nearly lost roughly eight months ago. But the most obvious signs of the fire\u2019s impact stand in plain sight: empty lots with \u2018For Sale\u2019 signs where homes once stood.\u00a0<\/span>
\n\u201cLast year was a rough period in <\/span>Los Angeles<\/span><\/a>, but especially for those in the Malibu and Topanga Canyon areas,\u201d said Redfin agent <\/span>Alec Traub<\/span><\/a>. \u201cOver the years, I\u2019ve helped a number of clients buy and sell homes in the affected areas. Many families were evacuated with nowhere to go. It was scary, and watching felt helpless. As an agent who helped people buy homes there, you feel responsible to a certain extent. It connects you.\u201d<\/span>
\nFortunately, all of Alec\u2019s clients were safe, and months later, there\u2019s still plenty of demand for homes in Malibu. Here\u2019s a snapshot of life after the fires.<\/span><\/p>\n

The Malibu market<\/b><\/h2>\n

\u201c<\/span>The market has not plummeted in Malibu by any means,\u201d Alec said. \u201cWhile things are softer, that\u2019s always been the case, compared to other luxury areas of LA, like Beverly Hills. <\/span>Due to its remote location, home prices tend to fluctuate, and homes typically sell for less and stay on the market longer. Still, t<\/span>here\u2019s demand to buy and sell.\u201d<\/span>
\nBut the face of that demand is changing. \u201cWe are seeing more homes or properties that were burned down now being sold as land,\u201d Alec said.<\/span>
\nIndeed of the 384 homes listed in the city of Malibu on Redfin during the first week of July, 125 were land plots. In Topanga, 72 out of 143 were lots. While not all are necessarily the land of homes lost, that\u2019s still 33 and 50 percent of homes for sale, respectively.<\/span>
\nThat\u2019s up slightly in Malibu from July of 2018, before the fires, when 117 of the 415 active listings in Malibu were vacant land, and 69 out of 128 listings were land plots in Topanga.<\/span>
\nAdditionally, the <\/span>median sale price of a home in Malibu in May of 2019 was $1,670,000. In May of 2018, six months before Woolsey, Malibu\u2019s median sale price was $3,250,000, which is nearly double today\u2019s typical home price.\u00a0<\/span>
\nWhere demand has taken a hit however, is the usually thriving rental market.\u00a0<\/span>
\n\u201cMany homes in Malibu are vacation or investment properties that are rented, especially in the summer, when homes rent for a high premium. This year, the demand has decreased,\u201d Alec said. \u201cI know an owner of multiple high-end properties, one of which is booked every summer. It\u2019s still not booked, which is indicative of where the rental market is. People who rent for the summer are typically from out of the state or country, and are scared to pay $100,000 a month after seeing what happened last year. Locals on <\/span>the other hand, have an understanding of the frequency and reality of wildfire season, and are less intimidated, but also less likely to want to rent in Malibu as it\u2019s too remote.\u201d<\/span><\/p>\n

Many directly impacted by the fires are looking elsewhere<\/b><\/h2>\n

While there are plenty of exceptions, Alec reports most people who lost their homes are not rebuilding.\u00a0<\/span>
\n\u201cMany people whose homes burned down <\/span>don\u2019t want to recreate what they had. Rebuilding in the same place would be a constant reminder of what was lost, which can be <\/span>hard to wrap emotions around,\u201d Alec said. \u201cBut people aren\u2019t making a mass exit, either. They\u2019re just putting their lots for sale to have a fresh start.\u201d<\/span>
\nAlec reports many of those fresh starts are in other high-end coastal communities like <\/span>Santa Monica<\/span><\/a> and <\/span>Pacific Palisades<\/span><\/a>. \u201cThese neighborhoods have a similar upscale feel. They\u2019re <\/span>close to the beach, are family friendly, with ocean views, and you can still get to Malibu easily. But it\u2019s not a dramatic shift. The buyer interested in Malibu won\u2019t be looking in downtown L.A., or even <\/span>Venice<\/span><\/a>.\u201d<\/span>
\nFor some whose homes remained intact, the Woolsey Fire was enough of a scare to spur a change in scenery as well.\u00a0<\/span>
\n\u201cI have a retired client living in Malibu. His house was not damaged, but the fires made him think twice about growing old out there,\u201d Alec said. \u201cLiving on his own and seeing the destruction made him realize wildfires are a risk<\/a> he is no longer willing to take. He rented his house and moved to a beautiful condo in Santa Monica. It\u2019s not a large house on the water like in Malibu, but he feels safer growing older with less risk.\u201d<\/span><\/p>\n

The canyon communities are still a draw for many<\/b><\/h2>\n

The departure of longtime canyon residents means openings for those who previously did not have a way into the Malibu area. Open lots and newly listed homes present new accessible options for buyers, and attractive opportunities for developers.<\/span>
\n\u201cYou\u2019re not guaranteed safety no matter where you live, and many clients understand that. I\u2019m working with a couple who just moved from Culver City to Topanga Canyon. They\u2019re planning to start a family soon and want a more rural feel for the future, similar to their East Coast upbringings,\u201d Alec explained. \u201cThe couple found a home in Topanga that is very remote, with little around except other scattered homes. It\u2019s beautiful, with brush and mountains, but is certainly high-risk.\u201d<\/span>
\nAnd while his clients were willing to accept the risks, many insurance companies won\u2019t.<\/span>
\n\u201cMy clients had a lot of trouble getting insurance. We worked with the same insurance broker as the sellers of the home. Even though it\u2019s the same property, and was not damaged in the fire, it was very difficult to get a new policy for the same coverage,\u201d Alec said. \u201cSeeing how real and widespread the risk of fires is, a lot of insurers are pulling back. If something like this happens again, it will be difficult for them to pay out on all the damage.\u201d<\/span>
\nWhile increasingly hard to secure, fire insurance is still a necessity, and in most local closings, required.<\/span>
\n\u201cOf course the buyers wanted the home regardless, but fire insurance was required to satisfy their lender\u2019s financing condition, and securing it delayed closing by over a week,\u201d Alec said. \u201cThey had to get multiple carriers and take out three separate policies covering earthquake, fire, and regular home insurance. They are also paying double, if not more, than expected, as a consequence of last year\u2019s fires specifically.\u201d<\/span>
\nWhile the process might seem a red flag to outsiders, for Californians, it simply comes with the territory.<\/span>
\n\u201cTopanga is a fire zone, but Culver City is an earthquake zone. That\u2019s part of living in Southern California. The risks of course went through their minds, but this canyon home offered the lifestyle they wanted for their future family. The pros out-weighed the cons.\u201d\u00a0<\/span><\/p>\n

Looking ahead<\/b><\/h2>\n

As Alec noted, there\u2019s no guarantee against wildfires. The best thing any buyer or seller can do is fully understand the risks.<\/span>
\n\u201c<\/span>Understand the risks and elevated costs related to not only owning, but maintaining a property in a fire zone. That includes strict rules around yearly brush clearance and the rising costs of services and insurances,\u201d Alec warned. \u201cMy Topanga buyers were ultimately okay with these challenges, but it\u2019s not for everyone. <\/span>It\u2019s important to have honest conversations about these topics between agent and client.\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

With rising insurance premiums, empty lots, and a shifting focus for clients, the impact of the deadly Woolsey Fire on LA\u2019s coastal canyon housing market can be felt, eight months later.<\/p>\n","protected":false},"author":13190,"featured_media":66279,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[52,43],"tags":[],"coauthors":[122],"class_list":["post-66276","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-climate-change","category-housing-equality-policy"],"acf":[],"yoast_head":"\nHere\u2019s How LA\u2019s Canyon Areas Are Recovering From Deadly Wildfires<\/title>\n<meta name=\"description\" content=\"The canyon communities of Malibu and Topanga were hit hard in last year\u2019s wildfires. 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