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| This plot of land in Malibu is on the market for $2.7 million. Paul Barnaby |
Seven months after devastating wildfires tore through Los Angeles County and scorched much of Malibu’s prized coastline, the remnants of once-luxurious beachfront homes are now back on the market. But instead of being heavily discounted due to the damage, many of these now-empty lots are commanding prices in the multimillion-dollar range and buyers are lining up to claim them.
Although paying over $2 million for a plot of land with nothing on it may seem outrageous to some, real estate experts say that when it comes to oceanfront property in Malibu, the land itself carries most of the value even when charred by fire. In fact, some argue that now may be the most opportune time to buy in.
Scarcity Is Driving Demand
“There are only so many properties available on the beach,” said Josh Flagg, a prominent Los Angeles real estate agent. “They’re not making any more beachfront land, and the smart buyers are jumping in now before demand returns and prices shoot back up.”
Flagg is currently listing a 6,200-square-foot lot on Las Flores Beach one of the areas hardest hit by the Palisades and Eaton fires in January for $2.75 million. The property was originally listed in 2023 for $3.44 million and later re-listed this past May for $2.99 million. Despite the lowered price, Flagg believes this is a rare bargain given the location.
The fires that swept across over 24,000 acres in and around Pacific Palisades destroyed more than 6,800 structures and displaced over 200,000 residents. The devastation was widespread, but even now, the value of Malibu’s coastline remains resilient.
Further down the Pacific Coast Highway, another lot that sold in 2023 for $4.85 million was recently listed at $3.55 million. While the homes are gone, the views and the high demand remain.
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| The plot of land is located in Malibu along the Pacific Coast Highway. Paul Barnaby |
Malibu’s Magnetic Appeal
For those familiar with Malibu’s allure, these prices make sense. “Malibu lives at the intersection of raw natural beauty and refined privacy,” said Tami Pardee, founder and CEO of Pardee Properties. “You’ve got a world-class coastline on one side and the Santa Monica Mountains on the other. Surfing, horseback riding, hiking, private beaches, those sunsets it’s unmatched.”
According to Pardee, Malibu continues to attract a range of buyers, from creative professionals to high-powered executives, thanks to its unique blend of laid-back luxury and close-knit community vibes. “It still feels like a small town,” she said. “That’s what makes it so different from anywhere else in LA.”
Pardee emphasized that the high price tags have less to do with structures and more to do with the dirt itself. “Strict coastal development regulations and limited buildable land keep inventory low, which keeps value high. That’s why seven and eight-figure listings are the average, not the exception,” she said.
Even fire-damaged properties don’t escape the rule. “If you’re seeing a burned home listed for millions, it’s because of the lot, not the house,” Pardee added.
But Can You Even Insure It?
However, one critical and growing barrier to buying in fire-prone Malibu isn’t just the price it’s securing insurance.
Since 2022, multiple insurance companies have either stopped issuing new policies in California or scaled back coverage dramatically. The rising frequency of wildfires has made the state riskier than ever in the eyes of underwriters.
According to a recent report by Deep Sky Research, one in five homes in California’s most extreme fire zones has lost insurance coverage since 2019. In the state’s most vulnerable areas, premiums have surged by 42% since 2009.
“If insurance companies are pulling out, we should all be paying attention,” said Max Dugan-Knight, a climate data scientist at Deep Sky Research. “They have the most advanced models and data, and their business depends on being right.”
Knight added that a lack of insurance can completely derail a home sale. “The first thing a lender will ask is, ‘Do you have insurance?’ If you can’t get it, you can’t get a mortgage, and that buyer disappears from the market. Multiply that across the region, and you get falling demand and falling property values.”
For now, many homeowners are turning to the California FAIR Plan, a state-run program created as a last-resort fire insurance option. But Pardee warns that even that might not be enough in Malibu.
“The coverage limits under FAIR are low, especially for high-end homes, and the gaps are massive,” Pardee said. “Some people try to cobble together multiple policies through specialty brokers, but even then, it’s not always possible. It’s time-consuming, it’s expensive, and sometimes it still doesn’t work.”
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| Graphic showing structures that were damaged or destroyed along the Pacific Coast Highway. LA County Recovers |
Despite the Risks, Buyers Keep Coming
Yet despite the fire scars and the insurance roadblocks, there’s no shortage of interest. Flagg said multiple potential buyers have already inquired about the $2.7 million lot he’s representing. And the incentive to rebuild is strong Los Angeles County has launched a disaster recovery initiative to help expedite permits for residents affected by the fires.
As of July, more than 800 homeowners in Pacific Palisades, Altadena, and surrounding areas had applied for rebuild permits, according to The Los Angeles Times.
“In Malibu, most buyers know the risks. Fires have always been part of the rhythm here,” Pardee said. “But so is rebuilding. People come in with their eyes open and they stay because of the lifestyle.”
Knight echoed the importance of long-term planning in a climate-risk zone. “Reducing emissions is crucial, but that won’t change the fire landscape overnight,” he said. “Buyers need to think about not just price and lifestyle, but the ability to insure, rebuild, and hold value long-term.”
For now, Malibu’s oceanfront remains as coveted as ever scorched earth and all.
