To Rebuild or Not to Rebuild:
That is the question. It's a big decision with a lot of weight, especially when entire communities—Pacific Palisades, Altadena—have essentially been wiped off the map. If you’re considering rebuilding, you need to think about the pros and cons.
Cons:
When Will I Move Back: Realistically you have to think that you won’t move back in for 2 years, maybe more. This is due to planning, design, permitting and construction. Yes, government will expedite permits but you still need time to plan and then build.
Construction Zone: Recognize that rebuilding means committing to your community being a construction zone for the next five years.
Community Character: The charm and character that made your neighborhood special may not return. Altadena for example, known for its traditional homes, will likely be rebuilt with more contemporary or modern structures.
Trees and mature landscaping will take time to mature, but really Southern California is a grassland with Oaks and Sycamores dotted throughout. Many of the trees that burned are non-natives and fire hazards anyway so we don’t need to replant them. A lot of beauty and fire protection can be achieved with natives.
Pros:
Community: A sense of community will return almost immediately. Rebuilding and reestablishing your relationships with neighbors, having gone through a disaster, will be a rich and rewarding experience. As humans we thrive when we pull together in a common purpose.
Value: Your lot will have more value over time with a rebuilt house than if you just sell it now as a vacant lot. There’s a reason why land speculators swoop in after a disaster. They see value. You should too.
Resources: Cities, the State and Federal government will be supplying resources to aid in the rebuilding.
Design: Whatever the size and scale of your new home it will be yours, a true custom home. You will design it for your needs.
Despite the challenges, I encourage most people to rebuild—but let’s discuss why and what to expect.
Facing the Hard Truths: Insurance and Ordinance Law
Here’s a reality check: most people are underinsured. Many homeowners don’t update their insurance policies after renovations or improvements, fearing higher premiums. Also, although most polices have inflation adjustments, inflation does not track evenly with increases in real estate value. In 2017 inflation was 2.13% but home prices jumped 10% in Los Angeles.
Additionally, ordinance and law coverage—which pays for code upgrades—is often insufficient. Many policies default to 10% coverage, but when your house was built to the codes in 1920 or even 1960, that 10% will not cover you for the radical changes in codes over the last century or half century. For any house built before 1980 you really need closer to 50% to meet modern seismic, fire, and safety codes. Without adequate coverage, rebuilding means facing the likelihood of a smaller home.
As depressing as that may sound, rebuilding smaller is still the better financial decision. Why? Because rebuilding ensures your property retains value. If you choose not to rebuild, selling a lot with no home will yield far less than a lot with even a modest structure. A smaller house can later be expanded or complemented with an ADU, making it an attractive asset in a recovering neighborhood.
The Value of a Smaller Home
A common real estate maximum is that the smallest house in a desirable neighborhood often sells for a premium because people want to get into that area and grow over time. By rebuilding, even on a smaller scale, you’re preserving the value of your property and setting yourself up for future flexibility. Down the road, you can expand or sell the property at a higher value. Real estate in Southern California, with the critical need for housing, will remain an excellent investment choice. We need housing.
Practical Solutions During Rebuilding
The good news is that cities are implementing measures to support homeowners during this process. For example, many areas will allow you to live on-site in an RV or store belongings in a container, reducing rental and storage costs while you rebuild.
Why Hiring a Local Firm Matters
Rebuilding in California means navigating a labyrinth of zoning, planning, and permitting requirements. A local firm—especially one with design-build expertise—understands the unique challenges of hillside ordinances, arborist requirements, and seismic standards. Out-of-state firms may lack this knowledge, leading to costly delays and headaches.
At Home Front Build, we handle everything from insurance claims to design, permitting and construction, ensuring a seamless process. We’re offer free feasibility studies for our clients, which cover critical questions: What are you allowed to build? How big can it be? How much will my insurance policy cover and can I get any funds from FEMA? Feasibility is the foundation for every decision, and having it done by experts familiar with local requirements will save you time and money.
Final Thoughts
Rebuilding is a daunting task, but it’s also an opportunity. By rebuilding, you’re preserving your property’s value, contributing to the revival of your neighborhood, and setting yourself up for future growth. Yes, it’s a long road, but with the right team by your side, it’s a road worth taking. If you’re ready to rebuild or just need guidance, reach out. Whether it’s us or another local firm, having experts who understand the lay of the land will make all the difference.
-Home Front Build
