EXCLUSIVE: Malibu's Devastating Year - Nearly 600 Homes Lost to Fires with Only 17 Building Permits Approved

Recovery in Malibu, California, has been gradual following the catastrophic Palisades fire in January 2025. This affluent coastal community, home to roughly 11,000 residents, saw luxury properties along the Pacific Coast Highway completely destroyed.

"The process has been slow in some respects," Malibu Mayor Marianne Riggins told Realtor.com. "The city responded immediately after the fire, but given the scale, extra steps were unavoidable." The community marks the anniversary of the fire while working to reconstruct.

Riggins explained that a Malibu Rebuild Center was established to help residents navigate city codes and permits. Permit approvals are projected to take 12 to 24 months. This comes as the city is still recovering from the 2018 Woolsey fire, which destroyed hundreds of homes. "In the past seven years, we've lost nearly 1,000 homes," she added. "Many of them were historic homes built in the 1930s and 1940s."

At least 700 structures, including almost 600 single-family homes, were destroyed in the Palisades fire. Progress has been slow: the city issued 432 preliminary building permits covering repairs, debris removal, and structures like garages. For single-family homes, 69 applications are under review by the planning board, 118 have been approved, 28 are in plan-check, and only 17 official building permits have been granted. No homes have received certificates of occupancy, meaning no residents have returned to fully rebuilt homes.

"Many homeowners want to rebuild, but some have decided the effort is too much and are selling," Riggins said. Strict codes are enforced to protect new homes from future disasters. Requirements include FEMA-compliant flood protections for beachfront properties, replacement of non-compliant seawalls, restrictions on timber piles, view limitations on narrow parcels, and modern wastewater systems. Height and square footage restrictions encourage like-for-like rebuilding or like-for-like plus 10% to maintain the original footprint.

Coastal homes face higher fees and additional steps for permits. Base planning fees start at $11,579, excluding site reviews, modifications, or variances. "We're encouraging homeowners to reconstruct the basic structure of the original home," Riggins added.

Manufactured or modular homes are being considered as faster alternatives. Investors, including brothers Nick and Mat Mowbray, have purchased burned beachfront lots, and some new homes will use off-site components to streamline construction on the narrow Pacific Coast Highway.

"As long as homes meet the California Building Code and our coastal development guidelines, we will review and approve plans," Riggins said. She noted modular homes were also used after the Woolsey fire, often indistinguishable from traditional homes.

Riggins emphasized the importance of maintaining Malibus community. "We want homeowners who will join our community, not just buy a second or third property," she said. The city council encourages rebuilding homes suitable for families rather than oversized mansions. Median list prices away from the coast remain around $5.95 million, supporting year-round residency.

After the fire, displaced residents searched for housing in nearby California cities like Oxnard, Riverside, and Santa Maria-Santa Barbara, and out-of-state locations including Las Vegas, Dallas, Phoenix, Portland, and Miami. "We hope former residents see that rebuilding is underway and return to Malibu," Riggins said.

Malibu’s Recovery: A Slow but Steady Rebuilding Process

The recovery efforts in Malibu, California, following the Palisades fire in January 2025 are still ongoing. As of now, rebuilding is slow but progress is being made. Mayor Marianne Riggins acknowledged the challenges faced, stating that the city’s response to the fire was immediate, but the scale of destruction necessitated careful, long-term planning. Malibu, which has a population of around 11,000, lost several luxury properties along the Pacific Coast Highway, and the community is still grappling with the aftermath.

As rebuilding continues, the Malibu Rebuild Center has played a critical role in guiding residents through the complex city codes and permit processes. Permit approval times are lengthy, with expectations for single-family homes to take between 12 to 24 months. This delay comes on top of the challenges posed by the 2018 Woolsey fire, which had already taken a toll on the community’s infrastructure and housing stock. In total, nearly 1,000 homes have been lost to both fires in recent years, many of them historic properties.

Despite these setbacks, progress is evident. While no homes have yet received certificates of occupancy, the city has granted a number of preliminary building permits for repairs, debris removal, and other necessary work. However, many homeowners have opted to sell their properties rather than rebuild, possibly due to the high costs and long waiting periods involved in reconstruction.

The city has enforced strict building codes aimed at reducing the risk of future disasters. These regulations include flood protection for beachfront properties, upgraded seawalls, and modern wastewater systems. To streamline the process, modular homes are being considered as faster alternatives to traditional builds. Developers and investors, like the Mowbray brothers, are also exploring innovative ways to expedite the construction of homes, including the use of off-site components for faster assembly.

Despite the challenges, Malibu is determined to rebuild its community with a focus on year-round residency. The city council is encouraging the construction of homes that are suitable for families rather than large luxury estates. As housing prices remain high, with median list prices around $5.95 million, the hope is to restore Malibu as a welcoming community for those who wish to live there full-time, rather than for seasonal visitors.

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• EXCLUSIVE: Malibu Has Lost Nearly 600 Homes to Fires This Year and Only 17 Building Permits Have Been Approved for Construction