In the aftermath of the destructive Los Angeles wildfires, many Pacific Palisades residents are facing the difficult decision of whether to rebuild or sell their properties. "Million Dollar Listing" star Josh Altman predicts a significant shift in the community's demographics, anticipating that a majority of families will not return.

In an interview, Altman revealed that his insurance agent estimates over 90% of affected homeowners are severely underinsured. This financial strain, coupled with the daunting prospect of rebuilding, is leading many to consider selling. Altman has observed a surge in inquiries from residents seeking listings in different neighborhoods, indicating a desire to relocate.

The emotional toll of repeated wildfires is also a factor. Many residents are understandably hesitant to rebuild in a fire-prone area, fearing future disasters. The lengthy and complex rebuilding process in California, which Altman estimates could take up to three years, further discourages residents. He anticipates a complete transformation of the Palisades community, with a new wave of residents eventually replacing those who choose to leave.

Adding to the challenges, a moratorium on insurance within a 35-mile radius of the fire line has left many homeowners without coverage. Those outside the moratorium zone face escalating premiums. Altman questions the feasibility of rebuilding with such high construction costs and limited insurance payouts. Selling the land and moving on appears to be the most viable option for many.

While acknowledging the long road to recovery, Altman remains optimistic about the Palisades' future. He believes the area will remain a desirable location and a sound long-term investment. However, the landscape, both literally and figuratively, will be dramatically different.

As of Friday, the Palisades Fire was 31% contained, having burned over 23,000 acres. Ten fatalities and widespread property damage have been reported.