While 2025 was slated to be the year that the Los Angeles real estate market recovered with a vengeance, it instead launched Q1 with an unexpected natural disaster, one that brought setbacks to the city that will be seen and felt for decades to come. More than 17,000 structures were destroyed and 180,000 residents displaced, leaving countless pieces of Los Angeles’ architectural and cultural legacy gone forever, only to be seen again in photographs and books. To say this was not the projection we were expecting nor prepared for is an understatement.
As the city of Los Angeles stands, people are now in rebuild mode. Even if you were not directly affected by the fires, you were affected. People have come together in unity, and through this shared grieving process, a renewed sense of love and respect has emerged for this extraordinary city and for all that live here. It feels like the younger generation is stepping up with inspiration and the needed energy to help get their lost communities and homes back. This is true of a group of older generations as well, but we are also seeing many in later life stages using this tragedy to downsize or change geographics, maybe even to an unknown area. Some feel if they have to start over and cannot have their known safety and familiarity, then they want to completely start fresh. Or, they may decide to preemptively make lifestyle shifts to align with retirement plans they had been considering for the years to come. Some people are even leaving the city altogether to be closer to family or try a new chapter. It seems like human nature makes these changes and jumps into action, and it comes into fruition in different ways for different people as we are witnessing.
Through it all, we have seen remarkable resilience — both in humanity and the overall market. Over two dozen homes sold for $20 million or more in Q1 2025 just after the January fires, and 310 homes sold for between $5 million and 11 million. Right now, it still seems insurance has helped place many of the displaced families. In the next several months we will see another uptick in sales as these fire victims will need to make permanent moves and decisions once they see that the rebuilding of these devastated areas is projected to take at least five years to completely rebound.
Where are the buyers settling in is another question I’m often asked. Many buyers have migrated to areas like Los Feliz, the Valley, Beverly Hills and Santa Monica. Some went into rentals in beach areas like Manhattan and Laguna Beach. Brentwood was the initial beneficiary of post-fire relocations, but the demand for homes has since spread citywide, reshaping both pricing and inventory across all of Los Angeles. The one thing that rings true for all the fire victims and non-fire victims alike is that the “Three Ds” have now turned into the “Four Ds” of what drives the real estate market: death, debt, divorce and now disaster. We will see a rebound from this disaster like every drastic fall. Whether it’s a financial crisis or just a cyclical change, “What goes down must come up.” In a metropolis as great as the special Los Angeles, one of the greatest cities in the world, we are sure to see a market recovery, and also some may regret not getting involved in the opportunity that arose from the destruction.
So … how is the real estate market in Los Angeles? Resilient, active, and full of heart. Despite the major setback, the market remains strong—driven by deep community ties and an unwavering belief in the city’s future. Sales are down just 3% since the fires, a remarkable indicator of stability given the scale of destruction. Leases, new acquisitions and re-trades are fueling activity, and momentum is building as buyers, developers and displaced families work to restore these neighborhoods—one lot, one family and one project at a time.
It’s been just four months since the tragedy, yet homeowners are securing insurance, properties are changing hands, and permits are being pulled. While questions remain about what, where, and how to rebuild, progress is well underway. We will all wish we bought in 2025. History is being written in real time—by those committed to seeing Los Angeles rise again.
Specializing in high-end real estate, Rayni Romito Williams has established a remarkable record with more than $17.1 billion total career sales with her partner and husband, Branden Williams. Her in-depth knowledge of market trends and luxury inventory, paired with her energetic and confident disposition, has made her one of the nation’s top-producing female agents.
