A
plot of land in Malibu is on the market for $2.7 million, a price that may seem steep given the area's recent history with wildfires. However, real estate agents argue that beachfront properties are rare and valuable, making them worth the investment despite potential risks.

    The 2025 LA fires destroyed many homes along the Pacific Coast Highway in Malibu, but some of these empty plots are now selling for millions. Josh Flagg, a Los Angeles real estate agent, notes that there's no new supply of beachfront properties being created, so buyers should take advantage of these lots before demand increases.

    A 6,200-square-foot lot with direct beach access and ocean views is listed for $2.75 million, down from its original price of $3.44 million in 2023. Tami Pardee, founder of Pardee Properties, says that the area's unique combination of natural beauty and refined privacy makes it a desirable location.

    However, securing home insurance can be a challenge due to the growing threat of wildfires. Some insurance companies have stopped writing new policies or cut back coverage for Californians living in high-risk areas. Max Dugan-Knight, a climate data scientist, warns that this trend is "precarious" and could lead to a decrease in property values.

    Homeowners who can't obtain traditional insurance often rely on the California FAIR plan, but its coverage limits are low, leaving a gap for higher-end homes like those in Malibu. Pardee notes that buyers may need to piece together multiple policies through specialty brokers, which can be expensive and time-consuming.

    Despite these challenges, beachfront properties in Malibu remain a hot commodity. Pardee says most buyers understand the risks and are willing to take on the challenge of securing insurance. Flagg reports that several people have expressed interest in the $2.7 million plot of land, with some potential buyers looking to build from scratch.

    Los Angeles County's disaster recovery initiative can expedite the permit process for rebuilding homes, making it easier for homeowners to start anew. Over 800 homeowners in affected areas have applied for rebuilding permits, according to a recent report by The Los Angeles Times.