S
ales of burned-down homes in Lahaina have increased, but real estate agents say sellers are driven by necessity rather than a desire to sell. Many property owners who lost their homes in the 2022 wildfire can't afford to rebuild or don't want to deal with the emotional toll of rebuilding.

    Since the fire, about two dozen properties that burned down have been sold, with most sales occurring in the past seven months. However, this number is small compared to the over 1,000 homes destroyed. Some sellers are asking for prices well above what the land alone was assessed for before the fire, citing their need to recover from their losses.

    Real estate agents say few people have put their properties on the market, and those who have often ask for high prices. For example, one lot is listed for $800,000, despite being assessed at $325,200 in 2023. Another plot of land listed for $599,000 had an assessed value of $339,500 in 2023.

    Sellers are setting their prices based on what they need to be financially secure after the fire, said Susan DeLoria, a real estate agent in Lahaina. However, most potential buyers haven't been willing to pay these high prices due to the elevated asking prices and uncertainty about when and how Lahaina will be rebuilt.

    Justin Tyndall, an assistant professor of economics with the University of Hawaii Economic Research Organization, said that as federal and state programs for temporary housing start to run out, people may struggle to hold onto their land without being able to afford it. Don and Andrea LaCaze, who lost their home in the fire, decided to sell their property after taking stock of their finances and realizing they couldn't afford to rebuild.

    The couple listed their vacant lot for $680,000, which is higher than its assessed value before the fire. They said they're trying to deal with the psychological scars left by the fire and adjust to their new life on the mainland.