Altadena Outpaces Palisades on Early Recovery Markers, New L.A. County Report Finds

Los Angeles County released its third quarterly economic update on the 2025 wildfire recovery on Monday, finding that the Eaton Fire area is showing earlier signs of return than Pacific Palisades on several measures, even as only a fraction of a percent of destroyed homes have been rebuilt and displacement assistance runs out for thousands of survivors.

The report, “Los Angeles Wildfires: An Economic Update #3,” was produced by the LA County Department of Economic Opportunity and the LAEDC’s Institute for Applied Economics. It is the third installment in a quarterly series tracking the Eaton and Palisades fires, which began January 7, 2025.

According to the report, 26.7 percent of destroyed structures across both fire areas have received rebuild permits — a pace on par with the fastest-recovering wildfires nationally, including the Tubbs and Marshall fires. But only 0.47 percent have completed reconstruction and received occupancy approval. Across the two fire areas, it took an average of 79 days from the date of a rebuild permit application to its issuance.

Vacancy rates in the Eaton Fire area, calculated from U.S. Postal Service data, have begun declining. In the Palisades, similar declines have not been observed.

Since the fires, the agencies said, the County, the State of California, municipalities, federal partners, philanthropy, community organizations and the private sector have mobilized resources for impacted residents, workers, small businesses and neighborhoods, including emergency response, debris removal, permitting support, direct financial relief, household relief and workforce services.

“Recovery isn’t just rebuilding — it is a family finally coming home, a business turning its sign to ‘open,’ a neighborhood full of life and a sense of belonging,” Third District Supervisor Lindsey P. Horvath said in a statement.

Fifth District Supervisor Kathryn Barger, whose district includes Altadena and Pasadena, said the broader set of indicators offers a fuller picture. “Looking at this broad range of indicators gives us a more complete understanding of where recovery is advancing and where additional support may be needed,” she said.

Mobility data drew a sharp contrast. Metro routes most affected by the fires remained 17.7 percent below pre-fire ridership in the first quarter of 2026, the report said. Pasadena Transit ridership, by contrast, was 22.6 percent above its adjusted pre-fire baseline.

Business reactivation rates surged in the fourth quarter of 2025 in both fire areas, well above the countywide average. But local hiring remains soft. Place-referenced job postings declined 8.2 percent in Altadena, 21.1 percent in Altadena/Eaton-related postings and 38.4 percent in Palisades-related postings during 2025. Demand grew for occupations tied to rebuilding, including construction managers, project managers, environmental specialists, social workers and field operations personnel.

“Getting people back into their communities is one of the most important indicators of long-term recovery,” said Kelly LoBianco, director of the LA County Department of Economic Opportunity. “When residents return, schools, small businesses, healthcare providers, transit systems and other neighborhood-serving institutions can begin to recover alongside them.”

The report estimates annual localized household spending losses of $79 million in the Palisades and $73.6 million in the Eaton Fire area — more than $150 million each year. About 38 percent of survivors have already exhausted or will soon exhaust displacement coverage.

Pasadena and Altadena share Pasadena Unified, which has reported fiscal pressures from enrollment loss tied to the fire. Pasadena City Council member Rick Cole told The Center Square in January, “We share the same school district, which is facing tremendous fiscal pressures.”

The next quarterly update is expected later in 2026.