In a remarkable instance from California’s housing market, a charred house featuring a significant hole in its roof has been sold for over $1 million.
A severely burnt and boarded-up home located in Torrance fetched an impressive price last week, despite being uninhabitable after a major fire last year.
This three-bedroom, two-bathroom ranch-style property was sold for 2 percent above its asking price.
“It’s quite something about Torrance,” said Rhett Winchell, the chief financial officer of NDA Real Estate, which managed the prior property auction. “We had significant interest in this property.”
The 1,140-square-foot home has been empty since a fire erupted at around 4 a.m. on February 1, 2024, as reported by the Los Angeles Times.
The site was said to be “dangerously littered,” and investigators believe the fire began when a heating grate ignited surrounding materials. An elderly man was the only person in the house at the time; he managed to escape through an open window.
Though he survived, he later passed away, prompting the house to be placed in probate auction last year.
Winchell noted that the winning bid during that auction was $980,000, but by the time selling costs were included, the total came to approximately $1,075,000.
The unnamed buyer sold the scorched property on May 11.
Details about future plans for the site remain vague, although Winchell mentioned that such extraordinary sales prices aren’t rare in the area.
He remarked that the home “sold for land price” last year, indicating that similar homes in good condition nearby usually sell for around $1.5 million.
This unusual sale highlights what the California Office of Legislative Analysis refers to as a “severe housing shortage,” noting that housing costs have been rapidly increasing for decades.
Governor Gavin Newsom has enacted numerous bills aimed at boosting the state’s housing supply, including initiatives to promote building attached housing units on existing residential lots.
Nevertheless, experts point out that California’s housing crisis is deeply entrenched.
The state is estimated to need around 2.2 million more housing units—roughly 15% of the current supply—to meet demand, according to a study by the American Enterprise Institute.
Eric McGee, policy director and senior fellow at the Public Policy Institute of California, remarked that the accessory housing law is likely the most effective reform, as these projects now account for about 20% of the state’s housing construction.
Still, it’s uncertain whether this is genuinely easing the shortage.
“We’re not sure what these units are actually being used for,” McGee commented, hinting that some might serve as home offices, “man caves,” or short-term vacation rentals rather than providing long-term housing.
