One year after the Eaton and Palisades wildfires, rebuilding in Los Angeles County remains slow. The fires scorched 37,728 acres and destroyed more than 16,200 buildings, yet fewer than 600 reconstruction projects have begun—leaving over 96% of lots untouched. Homeowners face insurance shortfalls, ongoing mortgage and rental costs, and permitting and construction timelines that often exceed temporary living benefits. The state has pledged $107.3 million to build 673 affordable rental units, but those funds will not replace lost single-family homes.
One Year After LA Wildfires: Rebuilding Stalled by Permits, Costs and Insurance Gaps
Rebuilding in California has been slow due to restrictions and rising construction costs.
One year after some of the most destructive wildfires to sweep Los Angeles-area neighborhoods, recovery remains slow as survivors confront permitting delays, rising construction costs and inadequate insurance payouts.
Scale Of The Damage
The Eaton and Palisades fires burned a combined 37,728 acres—an area larger than Disneyland, Knott’s Berry Farm and Universal Studios combined—and destroyed more than 16,200 buildings. Despite the scale of loss, construction has begun on fewer than 600 properties, leaving over 96% of sites untouched.
More than 16,000 buildings were damaged in the twin Eaton and Palisades fires.
Why Rebuilding Has Stalled
Strict state and local rebuilding regulations, the size of the recovery effort and sharply higher construction costs are major obstacles. Many homeowners find their insurance payouts insufficient to cover rebuilding costs. They often face continuing mortgage payments on properties that no longer exist, prolonged rental expenses in an expensive housing market and the rising costs of construction.
"There are people who are certainly determined to come back and build right away and have the financial resources and the insurance coverage to do that," said Jamie Mead, CEO of Thomas James Homes, to Fox News correspondent William La Jeunesse. "There are others who don't—and many of those have begun the process of selling their home sites."
Permitting is another bottleneck. Realtors interviewed in the wake of the fires say permits can take roughly two months to approve and, once approved, building a move-in-ready home can take another eight to nine months. Most insurance policies that cover temporary living expenses do so for about 18 months, a window that frequently closes before reconstruction is complete.
Construction has begun on fewer than 4% of destroyed homes and businesses.
"A lot of folks that I talk to are kind of in limbo land," Compass realtor Jeff Salcido said. "How much money are we getting for insurance? How much time do we have to build? What's life going to be like while we take all that on?"
State Response And Remaining Gaps
The state announced $107.3 million in housing funding for communities affected by wildfire, supporting nine projects intended to create 673 affordable rental units across Los Angeles County. While that funding aims to expand affordable housing supply, it will not directly replace single-family homes and small businesses lost in the blazes.
Governor Gavin Newsom said the investments will help "rebuild stronger, fairer communities...without displacing the people who call these neighborhoods home." Local officials, including the office of Los Angeles Mayor Karen Bass, had not provided comment at the time of reporting.
Choices For Survivors
For many residents the decision is stark: attempt a slow, uncertain rebuild amid regulatory and financial hurdles, or sell the lot and move on. With tens of thousands of properties still empty, the recovery will likely take years and will require coordinated action on permitting, financing and insurance reform to accelerate rebuilding.
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