Racial and Ethnic Disparities Stalling Recovery for Fire-Damaged Homes in Altadena

Altadena, August 2025 (Photo – Melissa Michelson)

Nine months after the devastating Eaton Fire ravaged Altadena, a new report from the UCLA Latino Policy and Politics Institute (LPPI) and the Center for Neighborhood Knowledge (CNK) paints a troubling picture of how racial and ethnic disparities are affecting homeowners’ recovery efforts. The findings reveal that while some homeowners are making progress, nearly 70% of the most severely fire-damaged homes show no visible signs of rebuilding, indicating a stalled recovery process.

By John Boucher

Authored by Gabriella Carmona, Paul Ong, Xalma Palomino, Vinit Mukhija, and Rodrigo Dominguez-Villegas, the report highlights significant disparities in recovery efforts. Black-owned homes were hit hardest, with nearly 60% of these properties suffering severe damage. Yet, Black homeowners are facing the slowest recovery, with 73% of the most damaged Black-owned homes showing no progress toward rebuilding. Asian homeowners are also grappling with similar delays, with 71% of these homes still in recovery limbo.

In contrast, Latino homeowners are showing more signs of recovery, with approximately 30% filing for rebuilding permits, higher than any other group in the study. Despite challenges such as underinsurance, high construction costs, and complicated permitting processes, Latino families are actively seeking ways to rebuild.

A concerning aspect of the report is the increasing presence of outside investors in the local housing market. Investors have purchased two-thirds of the severely damaged homes that have been sold, raising concerns about potential displacement and the long-term affordability of the area. Although only 5% of the most severely damaged homes have changed hands, the rise in investor activity suggests a shift in the housing dynamics that could push out long-term residents.

Key Findings

• Slow Recovery Progress: Nearly 70% of homes with severe damage show no visible steps toward recovery.
• Rising Investor Activity: Two-thirds of the homes that have sold since the fire were purchased by outside investors, fueling concerns about displacement.
• Permit Applications Stalled: About one in four homeowners have started the permitting process, but many face significant delays due to missing plans, insurance gaps, and financial barriers.
• Latino Homeowners Leading in Permit Filings: 30% of Latino homeowners have filed for rebuilding permits, more than any other group, with many also seeking temporary housing permits to stay on their properties during rebuilding.

Gabriella Carmona, senior policy analyst at LPPI, remarked, “Our findings show both progress and warning signs. While only about 5% of the most severely damaged homes have been sold, suggesting that most families want to stay, a troubling share of those sales are going to outside investors. Additionally, while about one in four homeowners have begun the permitting process, many are stalled due to the high costs of technical plans and construction delays. This mix of hope and hurdles means recovery is fragile, and targeted support is essential to help families return home.”

Lori Gay, President and CEO of Neighborhood Housing Services of Los Angeles County, which has been assisting displaced families, echoed these concerns: “Altadena already faced infrastructure challenges before the fire, and many families are now taking a wait-and-see approach. They’re waiting to see if their neighbors rebuild, if local businesses return, and how they can afford the high costs of rebuilding—especially given the lack of government support and underinsurance. Recovery isn’t just about clearing debris; it’s about providing the ongoing financial and policy support families need to rebuild.”

The report emphasizes that a large portion of households still stuck in recovery remain an unknown. Understanding the underlying reasons for the delays, whether insurance issues, financial constraints, or uncertainty about the future—will be critical in designing policies to help homeowners move forward. Future research will continue to explore the experiences of these families.

For more details, read the full factsheet on the UCLA Latino Policy and Politics Institute website.

About UCLA Latino Policy and Politics Institute

The UCLA Latino Policy and Politics Institute is a nonpartisan research organization dedicated to advancing social justice through innovative policy research and analysis. Their work aims to inform, engage, and empower the Latino community by advocating for equitable policies. Learn more at latino.ucla.edu.