“A nightmare.” That’s how one homeowner described the post-wildfire rebuilding process in Malibu during a recent interview with the Los Angeles Times.
The anonymous resident isn’t alone. Since a spate of wildfires ripped through L.A. County in January, only four rebuilding permits, or 2% of submitted applications, have been approved by the city. The sluggish pace of construction is causing property values to plummet in the wealthy coastal enclave, located between Santa Monica and Oxnard. Longtime residents are getting out, while overseas investors are moving in, raising questions about the future character of the city.
The Pacific Palisades and Altadena neighborhoods bore the brunt of the January firestorm, but Malibu was also badly affected. Around 720 of its homes were destroyed.
Rebuilding has been a challenge everywhere, but Malibu’s situation is unique. Permit-approval rates are much higher elsewhere. In the Palisades, approximately 43% of submitted applications have been approved for rebuilding. In unincorporated Altadena, the approval rate is around 26%. L.A. County is responsible for processing those applications outside city jurisdictions. In Malibu, that responsibility rests with the city itself.
Around 50% of the homes that were destroyed in Malibu were oceanfront properties, meaning the city is disproportionately impacted by new federal flood-control standards that require oceanfront properties to be built higher off the ground. But Malibu residents are also facing city-specific burdens that builders in the Palisades and Altadena are not. These include stringent new wastewater/septic system requirements.
While frustrating, the situation in Malibu should not be surprising. This is a community known for its history of “slow-growth” policies and NIMBYism. Now a question looms: could the very tools used to maintain Malibu’s character ultimately destroy it?
Abe Roy, the city’s former volunteer rebuilding ambassador, went public with his frustrations when he resigned last month. Once again, he has warned that the lack of post-fire construction could devastate the community.
“Supply is exceeding demand, and lots are selling anywhere from a 20 to 60% discount,” he told the Times. “That’s a premonition for a freefall.”
There’s a silver lining for real estate investors and buyers who’ve always dreamed of living in this beautiful suburb. Malibu is currently in a buyer’s market. Investors who can park their assets for a while — and who believe in Malibu’s future — may have a once-in-a-lifetime opportunity on their hands.
“Malibu is stringent on permits. But that’s where the value is,” said realtor Daniel Milstein. “It’s exclusive. And those that understand that value will be very happy with their property values down the road.”