The January wildfires in California may be the most expensive natural disaster in U.S. history. And among all of the impacted areas, neighborhoods with large minority populations bore the brunt of the economic fallout.
As the recovery continues, the California Association of Realtors (CAR) said that residents should accept change instead of fighting it.
The California Association of Black Real Estate Professionals (CABREP) hosted a webinar on Tuesday with key officials from CAR. The meeting focused on the implications for Black homeowners and agents.
CAR President Heather Ozur and assistant general counsel Neil Kalin were key speakers. Several Black agents with personal and professional ties to heavily impacted neighborhoods in Altadena also attended.
The webinar opened with a discussion of Altadena’s predominantly Black community and its history. According to a report from UCLA, 61% of the Black households in Altadena were located inside the perimeter of the Eaton Fire, compared to 50% of non-Black households. Many Black families moved to these neighborhoods in the 1960s after redlining and interstate construction forced them out of other areas.
Kalin led a segment on best practices for legal matters that agents may face when assisting Altadena residents. He advised Black agents to maintain an objective approach when working with clients. “Be a resource, be a friend, but don’t be an attorney,” he said.
Kalin also recommended that agents help their clients consider the time and cost of rebuilding, homeowners insurance proceeds, temporary housing expenses, and the benefits of selling for cash value versus rebuilding. This is especially important given potential building code changes, he said.
He also mentioned that the community will likely change over the course of the estimated two- to three-year rebuilding period. Kalin urged agents to remember this fact despite the neighborhood’s historical significance.
“[We know] about the historical relevance of this community, but there are going to be changes,” he said. “And maybe those changes might be for the better, maybe those changes may not be for the better. But as a result of what happened, there will be changes. The property owner needs to consider that nothing will return to being exactly the way it was before.”
Kalin closed his session with tailored advice for agents who are assisting landlords, buyers, and tenants with wildfire recovery. He noted that rent gouging rules — initially set to expire on March 8 — will remain in place until July 1. Landlords cannot raise rents by more than 10% until then.
For agents who are assisting potential homebuyers, Kalin recommended securing the maximum term for buyer representation agreements. California is also prohibiting unsolicited offers below market value. Of the seven affected ZIP codes he mentioned, only one is in Altadena.
Despite the devastation, homes and lots are still being listed in Altadena. According to Zillow, there are more than 50 active listings, with the average market value in the area at roughly $1.29 million.
As the recovery continues, many residents remain concerned about the long-term impacts of the disaster. Altadena’s population consists mainly of older Black homeowners, and challenges related to rebuilding, affordability and property sales could hinder their ability to pass down generational wealth.
