Former Million Dollar Listing star and Los Angeles real estate agent Josh Altman appeared on Fox Business Network’s Varney & Co. on Friday, addressing the difficulties faced by Pacific Palisades residents in rebuilding their homes after recent wildfires.

Altman highlighted inadequate home insurance as the primary reason why an estimated 70% of residents may not return to the area.

Guest host David Asman opened the discussion by citing a report that 70% of Pacific Palisades residents might not return after the fires and asked Altman to explain what this means for Los Angeles County.

Altman responded, “Yeah, David, thanks for having me again. I want to preface that statement and explain it a little bit. They’re not gonna not return because they don’t want to return. Of course, they want to go back there. For every one person leaving the Palisades, there’s another five that would love to be there.”

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He went on to explain that the financial burden of rebuilding, compounded by underinsurance and rising construction costs, is deterring many residents.

“They’re not going to return because it’s simple math. I don’t believe they’re going to be able to afford to rebuild,” Altman said.

He detailed how skyrocketing costs of materials, including lumber and steel, and the limited availability of construction crews have made rebuilding nearly impossible for many homeowners.

“With most of the people that are heavily underinsured, with the cost of construction, lumber, steel, we’re talking about a thousand-a-foot building in the Palisades and in Malibu, and that’s on top of getting a construction crew to show up to your site when there’s 16,000 structures that have been burned between houses, schools, [and] commercial spaces. It’s a disaster,” he added.

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The recent wildfires destroyed thousands of structures across Pacific Palisades, Malibu, and surrounding areas.

Homes, schools, and commercial buildings were among the estimated 16,000 structures damaged or completely lost. This widespread devastation has left many residents grappling with whether rebuilding is even a viable option.

Altman noted that the challenge is not just about personal finances but also the broader impact on construction resources.

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The demand for construction crews and materials has surged, further driving up costs and delaying recovery efforts.

“I don’t know if they’ll be able to do it with the insurance,” Altman said, emphasizing that many homeowners are heavily underinsured and cannot cover the full cost of rebuilding.

The situation in Pacific Palisades highlights a broader issue in California, where frequent wildfires have left many communities struggling to recover.

The lack of adequate insurance coverage, combined with rising costs of living and rebuilding, has forced some residents to reconsider whether they can afford to remain in areas prone to natural disasters.

Without significant changes to insurance policies and rebuilding strategies, many residents may be unable to return, altering the demographic and economic landscape of regions like Pacific Palisades and Malibu.

As Los Angeles County works to address the aftermath of the wildfires, homeowners face difficult decisions about their futures, with many unsure if they will be able to rebuild or move on.

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