If you're wondering what's happening to land prices in Pacific Palisades after the recent fire, you're not alone. The Alphabet Streets—a beloved neighborhood known for its flat lots, walkability, and proximity to Palisades Village—are now at the center of a market reset. For buyers, developers, and anyone searching phrases like "buying land in Pacific Palisades 2025" or "Palisades fire real estate impact", the good news is: opportunity still exists, but the landscape has shifted. While the below is focused on the Alphabet Streets area, we'd be happy to provide similar information related to the Huntington, El Medio & Via Bluffs, Marquez Knolls, Upper & Lower Bienveneda, the Highlands and more - so please don't hesitate to reach out.
What Happened to Land Value in Pacific Palisades After the Fire?
Before the fire, land in Pacific Palisades—especially in the Alphabet Streets—was commanding record prices. Between 2022 and early 2025, the average land value for a 5,200 square foot lot hit $565.87 per square foot, while 6,500 square foot lots averaged $508.08 per square foot.
Developers were paying top dollar because the resale potential was huge. Two perfect examples:
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850 Galloway St (5,200 SF lot): Acquired as a teardown, rebuilt into a luxury home, and sold in 2024 for $5.8 million.
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1017 Kagawa St (6,500 SF lot): Another tear-down turned custom build, this 4,350 SF modern home sold in 2023 for $6.85 million.
These properties serve as benchmarks not for land value today, but for the profit potential a builder might expect on a finished product in the Palisades.
Land Value Today: Pacific Palisades Lot Prices in 2025
In the months following the Palisades fire, there’s been a clear drop in land prices. Recent sales of lots in the Alphabet Streets show a 30–50% correction:
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1111 Galloway (6,500 SF): Sold for $1.738M → $267/SF
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1017 Kagawa (resold as land): $1.8M → $277/SF
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947 Galloway (5,199 SF): $1.5M → $288/SF
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1051 Hartzell (5,203 SF): $1.65M → $317/SF
These figures answer one of the most common search questions right now: “How much is land worth in Pacific Palisades after the fire?” The answer: quite a bit less than it was just one year ago.
Why This Is a Builder’s Market
While some might see a declining market, savvy investors recognize a window of opportunity. Consider the math:
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850 Galloway was likely purchased for around $2.5M (based on 2023 land comps). After construction, it sold for $5.8M—a healthy return, even after build costs.
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1017 Kagawa, bought for similar land value, sold post-build for $6.85M.
Now those same lot sizes are trading under $1.8M, offering developers a lower basis and better margins—especially if market confidence rebounds. If you're Googling "Palisades lots 2025", "builder deals in Pacific Palisades", or "Alphabet Streets investment property", this is your signal: the financial case for building in the Palisades may be stronger now than before.
Why Prices Dropped: The Palisades Fire Real Estate Impact
So why the dip? Here’s what’s driving the post-fire market correction:
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Permitting and Insurance Delays: Builders anticipate long timelines if they can't take advantage of the LA City Planning's expedited permit process and are uncertain about the cost, and availability of insurance going forward.
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Temporary Uncertainty: End-users are cautious. Many are waiting for rebuilding momentum to stabilize and infrastructure to be repaired before jumping in. Additionally, fire victims are still battling their insurance companies for payouts, with some remaining undecided about selling or rebuilding.
- ULA: The ULA aka "Mansion Tax" adds an additional transfer tax starting at 4% on properties valued at $5.3 million and higher, stymying developer interest.
Still, for those searching "should I buy land in the Palisades after the fire?"—the data points to yes, especially if you have a longer-term view.
Why the Alphabet Streets Remain a Top Investment
Even in a recovering market, the Alphabet Streets offer everything high-end buyers look for:
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Proximity to the Palisades Village
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Easy access to Temescal Canyon, PCH, and local beaches
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Strong public and private schools (including Pali High)
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Walkable, community-focused neighborhood layout
- Ideally positioned along the coast, Pacific Palisades sits between world-renowned neighborhoods like Malibu, Santa Monica, and Brentwood.
These fundamentals haven’t changed. And that’s why many are now searching "Pacific Palisades land deals 2025", hoping to find entry points into this premier zip code while prices are temporarily down.
Whether you're a developer eyeing your next marquee project or an end-user hoping to build your dream coastal retreat, buying land in Pacific Palisades after the fire represents a rare moment of opportunity. For the first time in years, lot prices in the Alphabet Streets are below their long-term potential—and if the market follows past patterns, they won’t stay that way for long.
Thinking of buying land in Pacific Palisades? Let's talk about this unique window in the Pacific Palisades real estate market.