After California wildfires, investors eye vacant lots, sparking resident fears

In Altadena, California, residents like 41-year-old lawyer Neil Tyler are focused on rebuilding their homes after the recent Eaton fire. Tyler and his wife are reconstructing their house to resemble their original one, expecting to return in the spring. However, Tyler recently discovered an investor's plan to build ten houses on an adjacent vacant lot. He and other residents have identified over a dozen similar projects, fearing a surge of developments that could erase the unique, interconnected communities that defined Altadena before the fires.

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I can't imagine we'll ever feel like we've gotten our dream home back. Because it's not just about the house, it's about the community we fell in love with.

"I can't imagine we'll ever feel like we've gotten our dream home back. Because it's not just about the house, it's about the community we fell in love with," Tyler said. This distrust of "predatory investors," as Tyler calls them, has united fire survivors from Altadena to Pacific Palisades and Malibu, all affected by last year's blazes. The issue has also reached the state legislature.

California lawmakers are working on new restrictions for denser construction, asserting that investors are exploiting special rules not meant for them. This initiative follows Governor Gavin Newsom's executive order last summer, which halted the application of a state duplex law in Pacific Palisades amid resident pressure to curb investor activity. "A disaster survivor whose home was destroyed through no fault of their own deserves a little more consideration than an investor looking to capitalize on an opportunity. Those people who lost everything have a special status," said Democratic Senator Ben Allen, who represents Pacific Palisades and parts of Malibu.

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A disaster survivor whose home was destroyed through no fault of their own deserves a little more consideration than an investor looking to capitalize on an opportunity. Those people who lost everything have a special status.

However, these proposals conflict with California's broader efforts to increase its housing supply amid a persistent shortage. Investors active in fire-affected areas argue they are building housing that survivors will want and that the greater Los Angeles area needs. Some fire victims also fear that attempts to restrict investors could devalue their properties or hinder their ability to build additional units on their land. Zachary Lamb, an assistant professor of urban and regional planning at UC Berkeley, noted that investors often become targets of disputes after natural disasters. He explained that tensions arise from the need to attract investment and expertise for rebuilding homes and businesses. "Investors clearly have a profit motive, which is integral to their business. But they also have the expertise," Lamb said. "It's not for sale."

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Investors clearly have a profit motive, which is integral to their business. But they also have the expertise. It's not for sale.