Six months after the most destructive wildfires in Los Angeles history, local and state officials are rolling out a flurry of reforms to spur home rebuilding and prevent displaced residents from giving up hope on returning to Pacific Palisades and Altadena.
The fires that began Jan. 7 destroyed more than 11,000 structures and caused $31 billion in estimated damage, forcing thousands into limbo and exposing weaknesses in the region’s rebuilding systems.
Public officials have waived non-safety building requirements, deferred fees and launched a permitting tool assisted by artificial intelligence to speed up rebuilding. Officials say the measures could shave months off reconstruction timelines and save homeowners as much as $30,000 by avoiding mandates like rooftop solar and electrification.
Gov. Gavin Newsom said during a recent press conference in Pasadena that debris cleanup was “months ahead of schedule,” with almost 10,000 homes cleared and the first phase of recovery nearly complete. “Now we turn the page to rebuilding,” Newsom said. “Our number one imperative is to restore hope for those who may have lost it and moved on.”
The recovery remains uneven. Of the 890 rebuild applications submitted in Altadena’s Eaton Fire zone, only 44 building permits have been issued. In Pacific Palisades, just 165 permits have been approved out of 650 submitted. Each application is taking an average of 10 weeks to wind through reviews, according to city figures.
“While the Army Corps did an amazing job clearing the debris, the city has failed to create the expedited permit process it promised,” said Rick Caruso, Pacific Palisades property owner and Los Angeles real estate developer, on X. Caruso formed the nonprofit coalition Steadfast LA to help fill gaps in the rebuilding process. “Residents are stuck in endless red tape at City Hall.”
A survey conducted by the Urban Land Institute, UCLA and USC found that nearly 80% of Palisades residents and 90% of Altadena residents plan to rebuild, but most say they’ll only do so if they can rebuild within three years.
Some frustrated residents want to sell
As of Tuesday, 213 lots are listed for sale in Pacific Palisades and 160 in Altadena, according to data from Homes.com. While not all of these listings stem directly from the fires, the volume shows how some displaced residents are choosing to sell rather than wait out the rebuilding process.
“The residents want to come back. But we’re not the wealthiest community. We’re land rich but cash poor and need every bit of assistance we can get,” said Lawrence Vein, a Palisades homeowner who leads the resident group PaliStrong, during a June meeting of the city council's ad hoc fire recovery committee.
In Pacific Palisades, where the average lost home was valued at more than $4 million, construction costs of $800 per square foot leave a number of residents underinsured. In Altadena, where homes resold for about $800 per square foot, only 14% of residents say they can afford to rebuild.
Some destroyed homes are now hitting the market as lots with plans for a new home included. One listing at 716 Haverford Ave. in Pacific Palisades is being marketed mid-construction, with the foundation poured, permits open, and more than $250,000 in materials sitting in storage.
The seller is offering a complete architectural plan — including designs by architect Aaron Neubert — for a 4,500-square-foot home with a pool, media room, and canyon views for just under $4 million.
The listing pitches the home as a shortcut for buyers who want to bypass permitting delays.
"Skip the planning and permitting phase and jump right into building your dream home in the Via Bluffs," the listing reads. "Save two years and millions of dollars by taking over this project, with the basement foundation already in place."
Reforms are moving roadblocks
By slashing red tape, deferring fees, and offering new design and financing options, officials hope to convince homeowners to stay and rebuild rather than cash out and move on.
A new public dashboard tracks permit timelines; licensed professionals can now self-certify certain code elements; and the city is testing an AI-powered review system through a partnership with Archistar. Officials say inspections are now being completed within two business days of request.
The state and county have also suspended the collection of rebuilding fees and fast-tracked certain approvals. Los Angeles County has reassessed more than 17,000 properties to lower tax bills for fire victims, while the city has issued executive orders to waive plan check fees, streamline haul route approvals and prioritize like-for-like rebuilds.
To address cost barriers, state leaders waived rooftop solar and battery requirements and delayed the implementation of 2026 code changes, which would have forced design overhauls mid-process. These moves, county leaders say, could lower construction costs by tens of thousands of dollars per household.
The private sector is stepping up, too. Caruso’s Steadfast LA, backed by CBRE, Netflix, Oaktree Capital Management and other firms, is coordinating bulk material purchases, offering prefab housing designs and helping fund temporary infrastructure in the Pacific Palisades and Altadena.
Residents and advocacy groups are pushing for the creation of a climate resilience district — a planning designation that could unlock public and private funding to help rebuild fire-hardened homes and wildfire-resistant landscaping. The idea, still in early discussion stages, has drawn interest from multiple City Council offices and philanthropic groups.
"There's a lot of money in philanthropy. We do have underprivileged people," Catherine Warner, a Palisades resident who lost her home in the fire, said during the ad hoc fire recovery meeting. "We want our firefighters, nurses and teachers to be able to live in the Palisades."