“Million Dollar Listing” star Josh Altman predicts Pacific Palisades will never be the same, as he doesn't expect the majority of families to return.
In a new interview with Fox News Digital, Altman explained how the Los Angeles fires have affected residents of the Southern California town and what the future holds.
He said he was told by an insurance agent that “more than 90 percent of these people are heavily underinsured.”
Altman added, “I think 65 to 70 percent of the population won't go back to the Palisades or Malibu. If you measure all these calls, people are sending me lists and asking me to talk about different areas. You can see that there are.
“We received many calls from people who no longer wanted to be in the fire area,” he continued. “You have to realize that there were multiple fires. … Does lightning strike twice? It will happen again. … That means most people don't have the bandwidth to run the build process. I think the fact that they haven't done so is the deciding factor.
“I don't see people going back there. I see a whole new crowd without a doubt. So don't get me wrong, the Palisades is one of the hottest areas in real estate. It's one of the safest long-term investments and one of the best places to live, close to the beach and the water. It all comes back to me. In our opinion, it will attract a whole new audience.”
Additionally, Altman said people are “tired” of the drama that comes with different insurance policies.
“The other thing I see a lot…is a lot of people who are fed up with what's going on in society. [insurance] We're talking about Orange County, a policy that can't leave California,” Altman said.
“Insurance for homes within a 35-mile radius of the fire scene is currently suspended and a significant number of homes are covered. Therefore, these areas currently have no insurance coverage. Well, that's zero. And premiums will go up for other people who aren't in those areas.
“That being said, how are you going to rebuild a house for $1,000 a foot if it's not fully insured?” he continued. “That's not happening. So you end up selling the land, getting the insurance company's check, moving on with your life, and trying to get as much money back as possible.”
Altman predicts that if he chooses to stay, rebuilding will take years and the costs will be astronomical.
“People need to understand the building process,” he shared. “Most people have never built a home in their life, so they probably think that building a home is much easier and much faster than it actually is. …Especially in a place like California. It's a very difficult process. There are no shortcuts.
“You don't see homes like this in places like the Palisades or Altadena. I don't see anything like that happening in the last three years,” he continued. “I think it's going to take a year to get everything sorted out. From what I'm hearing, they're going to fast-forward the permitting process after that. So instead of taking another year for permits, maybe another year. It may take a few months, but there's no way around the two-year construction process.
“And you have to consider the fact that even if you built it perfectly, do you want to live in an area where most people wouldn't be able to drive that fast?” So we have to assume it will take four to five years,” he added. “That's a realistic timeline. It's going to be a problem because it's going to take a very long time.”
As of Friday, the Palisades Fire was 31% contained and had burned 23,713 acres.
Ten deaths have been reported from the Palisades Fire since the fire broke out on January 7, and more than 3,500 buildings have been destroyed or damaged.
