Rebuilding Palisades is a ‘7- to 10-year problem’: Celebrity real estate agent

August 12, 2026 - 02:31

Josh Flagg, a well-known luxury real estate agent in Los Angeles, is warning that the full recovery of Pacific Palisades after the recent wildfires will not be quick. Appearing on a financial news program, Flagg described the rebuilding effort as a "7- to 10-year problem," pushing back against any notion that the neighborhood will bounce back within a year or two. He pointed to the sheer scale of destruction, the need for new infrastructure, and the slow pace of permitting and construction as major hurdles.

Flagg also linked the situation to the broader housing market, noting that high mortgage rates are making it harder for people to buy homes anywhere, let alone in a disaster zone. He explained that even residents who want to rebuild face financial uncertainty, as insurance payouts and government aid may not cover the full cost of modern construction. The combination of expensive materials, labor shortages, and strict new building codes in California will stretch the timeline further.

The agent stressed that while the community is resilient, patience will be essential. He suggested that some homeowners may choose to sell their lots rather than wait years to return, which could shift the character of the neighborhood. For now, Flagg says the focus should be on clearing debris and stabilizing the area before any serious construction can begin. His comments serve as a reality check for those hoping for a swift recovery in one of the city's most iconic coastal communities.