‘Unfortunately, Altadena is for sale’: Developers are buying up burned lots

In the wake of the devastating Eaton fire that tore through Altadena in January, hundreds of signs sprouted up in the ash-laden yards of burned-down homes: “Altadena Not for Sale.”

The slogan signified a resistance toward outside investors looking to buy up the droves of suddenly buildable lots. But as the summer real estate market kicks into gear, not only is Altadena for sale — it seems to be flying off the shelves.

Roughly 145 burned lots have sold so far, around 100 are currently listed, and dozens more are in escrow. The identity of every single buyer isn’t clear, since many are obscured by trusts or limited liability companies, but real estate records and local sources suggest that developers are buying the lion’s share of lots.

It’s far outpacing the Palisades market, where less than 60 lots have sold since the fire and roughly 180 are sitting on the market, sometimes for months.

Victor Becerra surveys his property on Wednesday, located next to a recently sold property on Wapello Street. Becerra is rebuilding and said he is anxious for the neighborhood to “bloom again.”

(Robert Gauthier / Los Angeles Times)

The roughly 250 lots sold and listed so far in Altadena represent only a small fraction of the 6,000 homes lost in the Eaton fire, but the market will probably get even hotter. Each month has seen an increase in listings and sales, and local real estate agents say the only thing keeping more from selling is the slow process of fire victims navigating insurance claims and wrapping their heads around the reality of rebuilding, which will probably take at least half a decade.

“In a perfect world, my neighbors and I would all rebuild, and five years from now, Altadena would look the same as it did before the fire,” said one resident who asked to speak anonymously for fear of judgment from community members urging others not to sell. “But it’s just not realistic.”

She listed the lot in May and had a handful of offers in days. She ended up selling to the highest bidder, a midsize developer that has purchased a few other properties in Altadena.

“I’ll always love Altadena, but I don’t have the resources for a rebuild that could take half a decade,” she said, echoing a Times report that said fire victims are hesitant to return to the neighborhood over fears that government officials won’t fast-track new development.

Despite the surge of lots hitting the market, demand has been steady, and lots are selling fast. Through the first four months of the year, the median property in Altadena spent 19 days on the market compared with 35 days over the same stretch last year, according to Redfin.

Lots have sold for as little as $330,000 and as much as $1.865 million, with most going for somewhere between $500,000 and $700,000. The first lot to hit the market listed for $449,000 and sold for $100,000 over the asking price in an all-cash deal — though with the influx in inventory since then, buyers are typically paying just the full asking price, not more.

“Everybody in Altadena thought they were going to rebuild, but depending on their situation, a lot of the time it just doesn’t make sense,” said Ann Marie Ahern, an Altadena resident and real estate agent. “We wanted to keep things local, but unfortunately, Altadena is for sale.”

Ahern currently has a listing on Rubio Crest Avenue for $735,000. She said most of the interest has come from either single developers looking for a project or two, or large developers hoping to buy as many lots as possible.

“One agent called me and said he has someone looking to buy 100 lots,” she said.

While many properties destroyed by the Eaton fire are up for sale, some displaced residents proclaim their homes are not.

(Robert Gauthier / Los Angeles Times)

Of the sales so far, around half of the burned properties have sold to buyers that have only purchased only one, while half have sold to buyers purchasing multiple lots including Black Lion Properties, Iron Rings Altadena, Ocean Dev Inc., NP Altadena and Sheng Feng.

Ahern said the shopping spree is causing deep concern among locals that the new builds won’t match the charm and quirks of Altadena, where century-old Craftsmans mingle with Colonial Revivals and English Tudors. New development can also bring gentrification, which is why some nonprofits are attempting to buy up lots to resell them below market value to displaced locals.

The collective fear? An Altadena ego death, where the community fades into suburban sprawl obscurity. The potential culprits? Developers.

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But some say the vilification of developers is misplaced.

“The big danger facing Altadena isn’t gentrification. It’s that it won’t get built back at all,” said Brock Harris, a real estate agent who has sold half a dozen burned lots, including some to developers.

Harris said most developers buying up lots aren’t huge companies looking to turn Altadena into a community of tract homes. Rather, it’s smaller developers capable of taking on 5 to 10 projects per year.

“If Altadena is going to come back, we need way more developers coming in to help out,” he said. “Otherwise, a decade from now, it’ll look desolate and unwelcoming with one house for every five lots.”

He said rebuilding is a complex process for an average citizen, and anyone considering that route should be prepared to spend the next three to five years yelling at inspectors and getting ripped off by contractors.

“Professionals will be the ones rebuilding the city,” he said, since they’re more equipped to handle the “bureaucratic mess” of building a house in L.A.

He’s not surprised at the booming speculative market. In the midst of a housing crisis — where home prices soar and empty land is scarce — a flat, buildable lot is a rare opportunity.

Harris expects the new builds in Altadena to match the ones that burned down — to a degree. One developer client told him they plan to replicate whatever style was there before. If a Tudor burned down, build a Tudor. If a Craftsman burned down, build a Craftsman.

Locals say replication brings pros and cons. One downside is that no matter what style developers opt for, the level of craftsmanship from a century ago can’t be copied due to the expensive process of building a house in the modern market and the thin margins developers have to make a profit. But modern building codes are much more fire-resistant, which could protect the neighborhood from fires in the future.

Initially, some speculators were concerned that homebuyers would be hesitant to purchase in an area that recently burned. However, in a state plagued by earthquakes, landslides and rising seas, Californians have consistently shown that they’re fine living and buying in disaster-prone areas. As offers pour in for lots in the burn zone, and with excessive lead levels found in the homes that survived, it’s clear that the fires haven’t diminished demand for Altadena real estate.

The same can be said for the surrounding foothill communities, such as La Ca?ada Flintridge or Sierra Madre, where a dry, windy day could put them at the same risk for disaster. In the months after the Eaton fire, both markets are surging.

To the west, the area of La Ca?ada Flintridge and La Crescenta-Montrose saw 92 home sales in the first five months of the year compared with 70 during the same stretch last year. To the east in Sierra Madre, 40 homes sold in the first five months of the year compared with 28 in 2024.

Fire victims shopping for new homes are partly responsible for the mini boom, said real estate agent Chelby Crawford. She said 10% of buyers at her open houses are people who lost their homes in the Eaton fire.

Crawford listed a house in the foothills of La Ca?ada Flintridge in April, and it went under contract a month later. In March, she sold a home high along Angeles Crest Highway to a displaced fire victim, who had no problem with the fire-prone location.

“Pasadena and La Ca?ada Flintridge are benefiting the most,” she said. “Fire victims are just excited to find their next home. It’s selling season.”