ALTADENA, CA – Smoke from the greedy Eaton fire was barely cleaned up when signs began to appear in the burnt ruins of a destroyed home that Altadena declared for sale.
But a month after Wildfire spent more than 9,400 homes and 14,000 acres in the Foothill community north of downtown Los Angeles, the first vacant lot was sold at $550,000 in cash, $100,000 above the asking price.
Of the 14 properties sold so far in the fierce Altadena, at least seven have been purchased by developers or investors. This includes a few people outside the US. They were all cash offers, she said.
Housing professionals and community members worry that fierce competition can push out longtime residents who want to regain the flavor and diverse enclaves of Altadena’s small town, but that vision sees escape as a buyer with deep pockets and little historical understanding of the area.
“In our opinion, money isn’t everything and it’s never going to happen,” Darrell Kerr said. “That’s the nature of people.”
“We fear we will see a lot of cookie cutters rising.
To counter this possibility, Greenline began securing long-term temporary housing for evacuated Altadena residents and began consultations to purchase burned lots.
Greenline closed its property earlier this month for $520,000 and is in talks with several other sellers, Schpper said. The foundation has effectively become a “land bank.” This is described by Pasadena-based lawyer Remy de la Peza as space for immediate and urgent acquisition of land to prevent sales to private business interests.
Land banks have been established in cities such as Atlanta, St. Louis and Cleveland, developing vacant urban lots for use by local nonprofits, community organizations and affordable housing.
“We’re buying us time to hold onto the land within the bank and to think about what it looks like to Altadena,” said de la Peza.
Deciding whether to rebuild or not is a difficult next step for families grieving the loss of their soulful neighborhood. Many hope that Altadena will remain the same quirky enclave that attracted artists’ studios, small horse ranches and mama and pop shops.
Before the January fire placed waste in most of Altadena, the neighborhood of around 42,000 people was a diverse haven for creatives and those who couldn’t afford a home in other parts of Los Angeles. This was one of the few areas in LA County exempted from exemption from Redline during the civil rights era, giving black people an unusual opportunity to own homes and build wealth for generations.
People of color make up more than half of Altadena’s population, with 27% of Latinos and 18% of Black Americans. Altadena’s black homeownership rate is above 80%, almost double the national rate.
A UCLA survey on the effects of the fire found that over 60% of black households were located within the burn area, compared to 50% of non-black households. Altadena’s black households have either been destroyed or suffered much more damage compared to 37% of non-black households.
“Policymakers and relief organizations must act quickly to protect the heritage and future of this historic community,” says Rory Phrase, professor of political science and African-American studies at UCLA and one of the research’s authors.
The housing market, which is already out of reach for many residents, appears to be showing signs of exceeding fire advance prices. According to Realtor.com, between 2019 and 2023, the median home price for Altadena was over $1 million, with median income of $129,123, according to the US Census.
Brock Harris, a local real estate agent who sold the first Altadena property after Eaton Fire, expects new home sales to be near, not exceeding $2 million. He received dozens of cash offers on his first list, and now there are five more lists, three of which are in Escrow. They were all cash offers. Prices were settled between $500,000 and $600,000. This is about 50% to 60% before the fire, he said.
“It’s purely financial,” Harris said of those who chose to sell.
He added that reconstruction is a very expensive company.
When Kerr and his wife, Susan Torah Kerr, first visited the ruins of their historic Spanish-style home, neither could imagine returning. Most of their neighborhoods were returned to Kura Rub, and the house they shared for 25 years was damaged beyond repair. There was little structure left, but it reminded me of my late son Justin, who died in 2013 at the age of 16 during swimming practice.
As the sun wore it was those memories that convinced the couple to rebuild. But not all of their neighbors were convinced. Some have small children and are worried about the toxic environment, Kerr said.
“It’s a lot to think about,” added Toler Carr.
Altadena resident and real estate agent Michael Farah has seen his neighbor tackle the question of whether the house survived but was severely damaged by smoke. A neighbor who bought his home in 2023 recently sold his vacant lot in cash for $400,000 at the asking price. It was in escrow for just 10 days.
Farrah said his neighbors considered rebuilding, but said the cost of using fire-resistant materials such as concrete and steel is the determinant.
“The estimates continued to rise,” Farrar said. “It was great for him and his family to move on.”
Ali Pearl, a writing professor at the University of Southern California who lost her home in the Eton fire, said she is committed to staying in Altadena. However, her insurance payments totaled $600,000, and the builder cites $1.2 million for rebuilding.
“We bought the house with the intention of living there for the rest of our lives and handed it over to our children,” she said, adding that she and her husband are applying for disaster financing to fill the gap.
Through working with community groups, Pearl coordinates resources and information for neighbors looking for alternatives to selling to developers. She sends them to the Green Line in the hopes of matching lands with priced community members from Altadena.
“I think about the kids of my neighbors who were born and raised on the streets, and the fact that they couldn’t afford to return to their neighborhood.
