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Demand for Newport Beach Housing Surges Due to ‘Unprecedented’ Los Angeles Wild Fires

Coastal Orange County has become a refuge for families seeking to flee the fires raging across Los Angeles County, with evacuees looking to rent or buy houses in Newport Beach and nearby beach communities.

More than 16,000 structures have been destroyed from a series of fast-moving wildfires that started Jan. 7 in Pacific Palisades, Altadena and Hollywood.

Those living in Pacific Palisades and Malibu were, according to local agents and realtors, attracted to Newport Beach because it offers those who lost homes in Western Los Angeles County as close a replacement as possible to their high-end residences near the coast.

Several local agents and realtors spoke with the Business Journal this week, sharing anecdotes of those who looked to Newport Beach as a place to rebuild from the ashes.

“We are getting a tremendous amount of people coming down and looking,” Steve High, an agent with Sotheby’s International Realty in Newport Beach, told the Business Journal about evacuees from the Palisades fire searching for places to live on or near the Orange County coast. “The magnitude of these fires are unprecedented.”

The initial batch of people fleeing the Los Angeles area fires were seeking short-term leases, as insurance companies were trying to get victims out of hotels and into rentals, High said.

Jacqueline Thompson, a luxury home agent with Surterre Properties Inc., said the local market is experiencing a perfect storm of high demand and shrinking inventory.

“Right now, there’s an urgent need for rentals. Many families are in a transitional period—they need a place to live while navigating insurance claims, rebuilding decisions and, in many cases, finding new schools for their children,” Thompson said. “Short- to mid-term rentals are in high demand, and inventory is tightening as more families seek stability.”

As the days went on, High said displaced residents cast a wider net and began looking for homes that were available for sale or for lease.

Paul Daftarian, the co-founder of Daftarian Group in Corona del Mar, said a vast majority of calls to his office came from evacuees seeking active rentals in the Newport Beach area.

Many of them had homes in Pacific Palisades and Malibu, so they were looking for high-end, fully furnished rentals in coastal areas, such as Newport Beach.

Local luxe agent Tim Smith told Stu News Newport: “I’ve had more calls in one week as a real estate agent than any other week of my career – north of 300 calls.”

“I’ve been showing lease listings all week to help out where I can,” he continued. “The demand is so high right now that properties, which had little activity for months, are suddenly getting multiple applications.”

Smith, a principal of Tim Smith Real Estate Group, also told Stu News that inventory would soon dry up, potentially affecting home purchases.

“This crisis is an opportunity for Orange County to really step up, show support and welcome Angelenos,” Smith said in his comments.

Placing Families into New Homes

Newport Beach homes for sale last week ranged from $2 million inland to $6 million or higher closer to the coast, according to Homes.com.

Rentals in Newport Beach last week ranged from a low of $1,747 a month for a 406-square foot studio to as much as $200,000 a month for a 10,255 square foot home with five bedrooms, according to Apartments.com, which listed 1,650 rentals.

High said he heard that one single family home rental has received as many as 10 applications. He noted that he has helped place three clients into rentals since the fires started earlier this month.

High and Thompson said many families who lost homes in Pacific Palisades have young children and are looking to buy houses in Newport Beach or nearby areas with reputable school districts.

“We’re seeing an increase in inquiries from those looking for temporary or permanent housing in Orange County,” Thompson told the Business Journal. “Areas such as Newport Coast and Shady Canyon, with its high-quality schools, coastal lifestyle and relative proximity to L.A., have become a sought-after option for those needing to relocate quickly.”

“Many of these families are still dealing with insurance claims and the uncertainty of rebuilding, which has created a significant demand for rental properties,” Thompson continued.

Marcy Weinstein, an agent with Compass, said she knew of someone who recently built their dream house in the Pacific Palisades. The 10,000-square-foot house survived the fires, but just about every other residential structure surrounding them was decimated.
The family decided it wasn’t worth going back home, as they did not want to deal with the toxic fumes associated with the fires and returning to a neighborhood where the rebuild could take five to 10 years to play out, per Weinstein.

Newport Beach rose to the top of the family’s list of places to relocate and settle down, she added, but there aren’t many houses available there that are available for rent or purchase.
Finding like-for-like properties is another layer of difficulty for displaced residents looking for a home outside of Pacific Palisades or Malibu.

Also complicating matters: there are homeowners associations that don’t permit short-term rentals, making it even harder for L.A. area fire victims looking for a place to stay for a few months.

“You’re in a no-win situation,” said Weinstein, who has shown about 20 rentals since the fires started.

Looking Ahead

“Beyond the immediate need for housing, these families are experiencing emotional and logistical challenges. They’ve lost their homes, belongings and, in many cases, a sense of security,” Thompson said. “They’re juggling insurance negotiations, figuring out whether to rebuild or relocate permanently, and trying to maintain normalcy for their children. Finding a rental in a competitive market can be another layer of stress.”

Daftarian added some people didn’t lose their houses but still are looking to move because the schools their children attended were either burnt or shut down due to the fires. A lot of those families looked to Newport Beach to relocate, with local schools absorbing students from Pacific Palisades.

He echoed concerns about low inventory and high demand. Daftarian forecasts home values in Newport Beach and surrounding areas jumping as much as 10% to 20% during the next few months.

Every agent who spoke with the Business Journal said they would assist those displaced by the fires.

“I’m doing everything I can to match displaced families with suitable rentals quickly,” Thompson said. “I’m also advising clients on their options, whether that’s renting short-term, considering a purchase or relocating entirely. More importantly, I’m helping them navigate this transition with compassion because I understand how overwhelming it can be to start over under these circumstances.”

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Parimal Rohit
Parimal Rohit
Parimal M. Rohit has nearly two decades of experience in journalism and recently covered Texas real estate for CoStar News and Austin Business Journal. He was also the editor of The Log, covering Southern California's and Northern Mexico's maritime and environmental spaces. Throughout his career, Rohit has also covered the Los Angeles Lakers, Los Angeles Dodgers, Bollywood and California politics. Rohit won 12 reporting awards from the San Diego Press Club, including best environmental reporting and best essay/commentary, and the Fort Worth chapter of the Society of Professional Journalists. His hobbies include photography, podcasting, travel and filmmaking. He is also the recipient of several fellowships, including one through the USC Annenberg Center for Health Journalism and another through the RK Mellon Foundation.
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