Barbara Corcoran Insists ‘100%’ of Palisades Residents Will Return After Wildfires—but Warns Cost of Rebuilding Will Be Much Higher Than Expected

Real estate mogul and “Shark Tank” star Barbara Corcoran has hit out at expert claims that a bulk of Los Angeles residents will turn their backs on their properties in the wake of the devastating California wildfires—insisting that “100% [of people] are coming back.”

Corcoran, 75, who lost her $1 million Pacific Palisades trailer home in the fires, shared her thoughts on the future of the communities that were hardest hit by the blazes—amid ongoing speculation about whether residents will choose to sell their razed properties instead of investing time and money into rebuilding.

During an appearance on Fox Business, Corcoran was questioned about comments made by celebrity real estate agent Josh Altman, who has repeatedly claimed that up to 70% of Pacific Palisades residents will not return to the area in the wake of the fires.

According to Altman, many have been turned off by the idea of living in a “fire area,” while others are so “fed up” with the struggle to secure insurance for their homes that they are seeking properties in other locations where policies are easier to obtain.

However, Corcoran immediately shut down the suggestion that more than half of Pacific Palisades residents plan to move away.

“I’m hearing the exact opposite,” she said. “I’m hearing 100% are coming back.”

Slamming Altman’s claims as “ridiculous,” Corcoran conceded that many of those who are planning to rebuild their homes aren’t fully aware of just how much it will cost them to do so.

“They aren’t quite realistic about what the construction costs are going to be, which will be much, much higher,” she pointed out.

When asked about the “time frame” for rebuilding, the TV host warned that there “aren’t enough contractors” in California to cope with the amount of work that needs to be done.

Residents should prepare themselves for a “reality check” when they get the estimates for their rebuilds, she added.

“What’s going to happen is people are going to have a little reality check when they get a $1,000-a-foot estimate for a 2,500-square-foot house, a house that they probably paid $1.2 million for, that’s going to be shocking,” she said.

Despite this, Corcoran believes Los Angeles residents will ultimately stomach those sky-high costs: “People are so deeply committed to rebuilding their homes, I think they’re going to get over everything.”

She also praised California Gov. Gavin Newsom for the steps he has taken to ease the rebuilding process, specifically by signing an executive order that suspends CEQA review and California Coastal Act permitting for reconstruction of properties that were “substantially damaged or destroyed” in the wildfires.

“It’s everything. … What he has done is wipe away all the red tape, allowing a clean road to rebuild in California,” Corcoran gushed. “That’s so important. Without that motion, nothing would happen, it would take many more years to rebuild. But he’s been terrific for the state.

“And President Trump has gotten on the page, too. Everybody’s working toward the same effort. It’s terrific to watch everybody coming together.”

Corcoran has not yet revealed whether she plans to rebuild the oceanside trailer home she lost when the Palisades fire ripped through the exclusive Tahitian Terrace Mobile Home Park—wiping out dozens of properties.

At the time, The Corcoran Group founder described the loss of her beloved home as “devastating,” adding that many of the people who lived in the community face a “long road ahead” as far as rebuilding is concerned.

“These are the kindest, most generous souls I’ve ever had the privilege of knowing, and my heart aches for the pain they’re enduring,” she wrote in a social media post.

“To support them on the long road ahead, I’ve created a GoFundMe (link in bio). Every penny raised will go directly to the residents to help them begin again,” she added.

A recent study from a team of University of California, Los Angeles economists estimated that the fires could have caused up to $164 billion in property and financial loss—much of which was caused by the two largest blazes, the Palisades and the Eaton fires.

In total, the two fires burned more than 37,000 acres in early January, killing at least 29 people and ravaging more than 16,200 homes and businesses.

The true cost of rebuilding all of the areas of Los Angeles County that sustained damage during the blazes is not yet known. However, the task of trying to restore all of the structures that were destroyed will be monumental—and incredibly expensive.

For individual homeowners, rebuilding costs will vary widely depending on the size and nature of the new home.

In the Pacific Palisades, homes were listed at a median price of $4.7 million in December 2024, but much of that value was in the land itself, before any improvements. The median list price in Altadena for that same month was about $1.3 million.

Land values in Los Angeles account for an extremely high share of home value, among the highest in the nation. Across Pacific Palisades and Altadena, land values make up about 78% of total property value, according to an analysis from the American Enterprise Institute.

Using market values as a guide, a rudimentary analysis from the Realtor.com® economic research team suggests that the typical cost to rebuild a home could reach $947,000 in Pacific Palisades and $262,000 in Altadena. That rough estimate assumes an improvement value share of 20% in both areas, after deducting a 2% profit margin for builders.