A Los Angeles realtor believes a staggering 70 percent of Pacific Palisades residents may never return to rebuild their homes.
The Southern California community was left devastated by unprecedented wildfires, which have scorched more than 50,000 acres, claimed 28 lives, and destroyed more than 16,000 structures since January 7.
Despite pledges to rebuild, former Million Dollar Listing real estate agent Josh Altman believes it to be easier said than done and painted a devastating reality for many former homeowners with particularly grim challenges ahead.
'They're not staying away because they don't want to return,' Altman told Fox Business. 'Of course they want to go back there. 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 is known for brokering high-end real estate deals across Los Angeles, outlined a daunting economic landscape.
'We're talking about $1,000 per square foot to build in places like the Palisades and Malibu. With most people heavily underinsured and construction costs skyrocketing - lumber, steel, everything - it's just not feasible for many,' he said.
Altman's grim prediction is compounded by the logistical nightmare of rebuilding amidst an area that looks more like a war zone full of burned out buildings, ash coating the area and toxic chemicals everywhere.
'Getting a construction crew to show up at your site is going to be nearly impossible when 16,000 structures - homes, schools, commercial buildings - have been destroyed.
Early estimates peg the financial toll at around $50 billion, a figure that far surpasses previous disasters in the region.
The situation has been further exacerbated by a shrinking insurance market in California, with major providers pulling out, reducing coverage, or refusing to write new policies altogether.
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