Southern California Fires: What They Mean for the South Bay Housing Market and Community

The recent Southern California fires have left a devastating impact on areas such as the Palisades and Altadena, displacing thousands of families and disrupting schools, businesses, and entire communities. While the rebuilding process begins, the ripple effects are being felt across the region, particularly in the South Bay, where we anticipate significant changes in the housing market.

Anticipated Upward Pressure on Housing Prices

As families begin to relocate, the South Bay is emerging as a desirable destination due to its strong community, schools, and job opportunities. While we haven’t seen drastic increases in home prices yet, we expect upward pressure in the coming months as displaced families with financial means—some of whom can buy homes outright—seek temporary or permanent housing in the area.

Rental demand is also on the rise, and unfortunately, some reports of price gouging have surfaced. It’s important to remember that under California law, rental increases should not exceed 10%. Fairness and compliance will be critical as the market adjusts to these new dynamics.

The Rebuilding Timeline and Costs

Rebuilding efforts in fire-damaged areas are expected to take two to three years (and more), with meaningful progress starting after the first year. However, rebuilding costs are already surging, with prices estimated between $800 and $1,200 per square foot due to the overwhelming demand for contractors and materials. This will likely lead to broader cost increases across the region.

Insurance premiums are also expected to rise, even in moderate-risk areas such as Palos Verdes, and HOA special assessments for fire risk may increase for condos and townhomes. These factors will add further financial strain to those affected by the fires.

Challenges Beyond Housing

The fires have disrupted daily life for many, with schools, businesses, and community activities halted in the affected areas. Families are relocating not only for housing but also to ensure continuity in their children’s education and work commitments. As the South Bay absorbs some of these displaced residents, the local economy and infrastructure will feel the impact.

Looking ahead, the upcoming rain season presents new concerns about landslides in fire-damaged areas, which could further complicate rebuilding efforts and relocation plans.

Proactive Measures for Homeowners

For those concerned about fire preparedness, installing fire suppression systems, such as pool water pump systems (approximately $5,000), can be a worthwhile investment. Additionally, our ELEVATE Vista Sotheby’s Program can help homeowners prepare their properties for sale by funding repairs and upgrades, making it easier to navigate the current market.

Scherb Homes Group Is Here to Help

At Scherb Homes Group, we are already seeing increased interest from families seeking homes and leases in the South Bay. While the full impact on prices is yet to materialize, the demand is growing, and we’re here to guide you through this complex market. If you have questions about buying, selling, leasing, or preparing your home for sale, please don’t hesitate to reach out to me, Cliff, directly.

We are incredibly grateful to the Los Angeles Fire Department for their bravery and extend our deepest sympathies to the families affected by these fires. Together, we can rebuild and recover stronger than ever.

For more information or assistance, contact us at Scherb Homes Group. We’re here to help.