When wildfires tore through Pacific Palisades and Altadena in January, they destroyed nearly 11,000 homes worth a combined $29.7 billion — displacing hundreds of families now stuck in limbo. In a new resident survey, most say they want to rebuild, but only if it happens quickly.
In the Palisades, where the average lost home was valued above $4 million, and in Altadena’s Eaton Canyon, where losses averaged nearly $1.4 million, delays are testing residents’ resolve to return.
A resident survey by the Urban Land Institute, UCLA and the University of Southern California found that 78.5% of affected Palisades homeowners and 89.2% in Altadena’s Eaton Canyon area intend to reconstruct their homes. But 70% in the Palisades and 63% in Altadena say they won’t return if rebuilding takes more than three years — a timeline many already fear is slipping out of reach. The survey was conducted in April 2025 and includes responses from more than 200 homeowners in the Pacific Palisades and Altadena fire zones.
Rebuilding costs, insurance gaps and a lack of centralized leadership are creating new obstacles for homeowners already reeling from displacement, the survey shows. Many respondents cited poor communication from leaders and disjointed public permitting processes as barriers that have left them in the dark about next steps and community-wide recovery plans.
Despite the setbacks, many displaced homeowners remain deeply attached to their neighborhoods. Kimberly Stepp, a Palisades resident and commercial real estate broker whose home was damaged in the fire, said she’s confident most families will return — if they can.
“They’ve built new lives around their kids’ schools and routines, but the Palisades is still home,” Stepp said. “They’ll wait it out, clear their lots and come back when the time is right."
High costs, high hopes in Palisades
A vast majority of those who plan to rebuild said they want to stay in their same neighborhood, and nearly all said they planned to hold on to the home once it’s complete.
Still, two-thirds of respondents said they aren’t sure they’ll have the resources to rebuild and cover living expenses.
“A lot of people were underinsured,” Stepp said. “There’s a [budget] shortfall of at least half a million to $2 million in some cases.”
Stepp said most residents just want to return home, even if that means scaling back their original vision. Roughly 77% of those who plan to rebuild want to re-create their homes within 10% of the original size. Still, 62% say they’re willing to give up customization if that’s what it takes to stay within budget.
“I think they’ll give up customization if that’s what it takes to come back,” Stepp added. “Especially with what I call ‘Palisades 2.0’ on the horizon — people want to be part of that, but only if they can make the numbers work.”
Construction costs remain top of mind, especially for households with less than $5 million in net worth. Palisades owners estimate rebuilding will cost about $800 per square foot, while resale value is expected to reach around $1,300 per square foot — a margin that offers some cushion, but not enough to close funding gaps.
Residents aren’t just looking for financial help — they’re asking for better direction. When asked what would be most helpful, the top responses were “information about the community rebuild” and “a person to talk to.”
Stepp praised early recovery efforts like the emergency resource center on Westwood and Pico, which helped residents access tax adjustments and federal documents. But when it comes to long-term rebuilding, she said, “They’re still a little unorganized … still a little uncertain of how the process is going to go.”
Altadena residents are ready to go
Altadena homeowners reported even stronger intent to rebuild. But like their Palisades counterparts, most won’t return if rebuilding takes over three years.
Construction costs are lower — averaging $570 per square foot — but so are resale values, with most residents estimating $805 per square foot. That tighter margin leaves less room for customization or cost overruns.
Only 14% of Altadena respondents said they have enough financial resources to cover all rebuilding and living expenses. Most are counting on insurance to fill the gap but worry that coverage won’t stretch far enough.
Design preferences mirror those in the Palisades. Eighty-four percent want a like-for-like rebuild, and more than half say they plan to work with an architect.
Altadena’s first wildfire rebuild broke ground in late April, offering hope for a community still reeling from the Eaton Fire’s destruction. Margot Stuebert, who lost her 100-year-old cottage in the blaze, became the first resident to see construction begin.
She told NBC Los Angeles that the start of construction represented what felt like the first day of her "new life."
Architect Trinidad Campbell, who is designing Stuebert’s new home, said it took two months just to secure the permits. As of mid-May, only nine permits had been issued in the area destroyed by the Eaton fire.
The neighborhood's emotional pull remains strong. Homeowners said their top reasons for rebuilding include staying close to family and recouping their home’s value—not making a new investment.