A broker in Los Angeles believes that a stunning 70 percent of the inhabitants of Pacific Palisades may never return to rebuild their homes.
The community in South California was destroyed by unprecedented forest fires, which have accelerated more than 50,000 hectares, claimed 28 lives and have destroyed more than 16,000 structures since 7 January.
Despite the promise to rebuild, former million dollars mention broker Josh Altman believes that it is easier said than done and a devastating reality painted for many former homeowners with particularly grim challenges.
“They don't stay away because they don't want to return,” Altman told Fox Business. 'Of course they want back there. They are not going to return because it is simple math. I don't believe they can afford to rebuild. '
Altman is known for high-end real estate deals in Los Angeles, sketched a discouraging economic landscape.
'We are talking about $ 1,000 per square foot to build in places such as the Palisades and Malibu. With most people raising heavily under -secured and building costs – wood, steel, everything – it's just not feasible for many, “he said.
Altman's grim prediction is exacerbated by the logistics nightmare of the reconstruction in the midst of an area that looks more like a war zone full of burnt buildings, the area and toxic chemicals everywhere.
'Getting a building team on your site will be almost impossible when 16,000 structures – houses, schools, commercial buildings – are destroyed.
Former million dollars mentions broker Josh Altman believes that the reconstruction will be a challenge and has painted a devastating reality for many former homeowners
In an aerial photo, neighborhoods are in ruins in the aftermath of the deadly Eaton Fire last week
Houses burned on the ground in the Eaton fire in Altadena, California are seen in this aerial photo
“It's a disaster. Even with insurance I don't know if they can do it. '
Since the beginning of January, South California against ruthless forest fires, with flames that flood entire communities and leave destruction in their wake.
As the fire conditions on Friday have fallen somewhat, the region delete itself for isolated bags of rain during the weekend.
Although the much needed precipitation could help in controlling persistent hotspots, it also is a new threat: mud flows in areas with fire with fire.
In response to the massive fires, President Donald Trump declared a national emergency situation after touring the most difficult areas on Friday, including Pacific Palisades and Malibu.
Accompanied by residents who had lost everything, Trump witnessed the immense scale of the catastrophe.
Early estimates have the financial toll at around $ 50 billion, a figure that exceeds previous disasters in the region.
The situation is further exacerbated by a shrinking insurance market in California, where large providers withdraw, reduce or refuse to write completely new policy.
The communities in South California were destroyed by unprecedented forest fires, which have broken more than 50,000 hectares, claimed 28 lives and have destroyed more than 16,000 structures since 7 January and have destroyed more than 16,000 structures
Trump spoke with residents while he visited an area affected by fire in the Pacific Palisades district of Los Angeles
President Donald Trump talks to California Govin Newsom after arriving at Air Force One at Los Angeles International Airport in Los Angeles, on Friday
Marine One, who wears US President Donald Trump, flies on Friday destruction caused by forest fires around Los Angeles, California
Trump and First Lady Melania walk with Jason, head representative of emergency services at the Los Angles Fire Department, left, and capt. Jeff Brown, head of Station 69,
The Governor of California Gavin Newsom has approved a $ 2.5 billion exemption package aimed at nature fire repair, but Altman is of the opinion that only financing will not be sufficient to overcome the obstacles of the reconstruction.
The state of California has a notoriously slow and bureaucratic building process.
“The recipe for success is cutting the bureaucracy,” Altman suggested. 'Building a house in California is wrapped in so much bureaucracy. It can take a year to get permits, and if you are near the coast, the coastal committee can add another two years.
'It's time for the Governor to act and remove these roadblocks. We have to move forward as a team. '
Altman also suggested that specific rules and taxes must be withdrawn, such as the mansion tax and nature regulations.
“Get rid of all the people who have lost their houses,” he said. “That's how we become a strong Los Angeles again.”
Altman also shared his take and had led by the fire -growned communities.
“You have to see it to believe it,” he said. “I walked the Palisades and Malibu. It is much worse in person than you could ever imagine. Hopefully seeing this destruction will open more financing at the federal level of first -hand. '
