Six months after California’s most devastating wildfire, a recovery is underway. Land is changing hands, developers are coming in, permits are being approved, homes are under construction. Yet, for many, the process is still moving slowly.

“This process is going to take time, money and patience,” said real estate agent Laura Alfano, who specializes in Malibu and the Pacific Palisades properties. “And that will lead to a combination of developers, investors and then families who have legacy wealth. And that’s what we’re seeing in terms of purchases. Not only smoke-damaged homes, but of the actual lots themselves.”

Ross Greenberg lost his home in the Palisades fire. And although his rebuilding permits were approved in early June, Los Angeles County still isn’t letting him break ground.

“I’ve paid over $12,000 in my permit fees right now just to get my process moving,” Greenberg said.

Besides battling with regulations, many residents are more focused on their fight with insurance companies.

A person walks amid the destruction left behind by the Palisades Fire in the Pacific Palisades neighborhood of Los Angeles, Jan. 9, 2025.  (AP Photo/Jae C. Hong)

Before the fires spread across southern California, State Farm dropped 1,600 policies in the Palisades last July. The insurance company faces lawsuits from homeowners who claim they were left “grossly underinsured.” With poor support by insurance providers, many residents solely rely on the California FAIR Plan, which may barely cover the cost of foundational and septic tank development in places like Malibu, which lost 600 homes in the fire, including 300 along the beach.

“You’re going to spend two to three million dollars on just your foundation, your septic system and your seawall,” said Don Schmitz, president and principal planner of real estate consulting company Schmitz & Associates. “And that’s before you put up the very first stick to build the actual house.”