SerpApi.Org
The prices of luxury homes in Malibu have been slashed as properties fail to sell following devastating wildfires last year.
The Palisades Fire in January 2025 scorched 600 single-family homes in Malibu, and thousands more in surrounding areas, wiping out nearly all the beachfront homes in the east of the city.
The disaster has left the California beach town, once considered an upscale residential hub, with rows of empty luxury homes and empty lots up for bargain prices.
The median price of single-family homes in Malibu fell 7.3 per cent year on year in June, according to Realtor.com. Active listings across all Malibu property types rose 7.1 per cent, compared with a 5.5 per cent decline across California as a whole.
Owners are struggling to sell up, with many forced to lower the asking price of their property dramatically to attract potential buyers.
Olivia Lynn told The Wall Street Journal (WSJ) during a July open house: “I was hoping to get an offer by August, but I don’t think it’s going to happen.”
She has had to reduce the cost of her luxury townhouse, which has views over the Pacific, from $2.3m (£1.7m) to $1.9m over the course of a year.
Experts say homeowners have grown tired of the disaster threat and soaring insurance premiums in the aftermath of the fires. Jill Reeder, an estate agent in Malibu, told the Journal: “It’s very disturbing and it definitely gives people pause.”
She added that there were now so many houses on the market that it was putting clients off buying, saying: “You lose clients who would have taken on that property because there are so many choices.”
Malibu has been home to stars of the entertainment industry including Beyoncé and Jay-Z, the singers, who are married and live in Paradise Cove on what is known as Billionaires’ Row.
Tom Hanks owns a home west of the Malibu Lagoon State Beach and the Malibu Pier, while Lady Gaga, Julia Roberts, Leonardo DiCaprio, Robert Downey Jr and Miley Cyrus have properties in the exclusive beach city.
A home once owned by Charlize Theron, the South African actress and film producer, burnt down during the Palisades Fire. David Smick, the owner, an economist and author, told the WSJ it would cost $2.3m for a new foundation, making him question whether it would be worth it.
There were 37 family homes on the market for $10m to $15m, said Ms Reeder.
Meanwhile, the city’s population as a whole has been declining. According to a census, the city had 9,574 residents as of July 2025 – down from 10,653 in April 2020.
Steve Uhring, a council member, attributed the decline to the frequent natural disasters.
He told the WSJ: “We typically have a planning department and a building department that deals with one or two properties coming in every couple of months. All of a sudden you’ve got 600 properties that we’re looking at rebuilding.”
