Buying Land in Pacific Palisades in 2026: What the Market Actually Looks Like

Tony O'Brien·Estate Agent, The Sher Group·May 6, 2026·10 min read

The Market in Plain Numbers

The land market in Pacific Palisades is bifurcated. On one side: well-priced lots that sell quickly. On the other: overpriced properties that sit and depreciate. The difference is usually 15-20% in asking price.

As of April 2026, there are 147 active land listings in Pacific Palisades. The median asking price is $2,295,000. The average asking price per square foot is $360. The average days on market for overpriced listings is 108 days. For well-priced listings, it's 41 days.

The 507 lots that have sold since the fire sold at a median price of $1,739,000 - about 24% below the current median asking price. That's a helpful market signal: if you're buying now, you should expect to pay less than what's listed if you're strategic about timing and execution.

The Rebuild Pipeline Is Accelerating

The pace of rebuild permits tells the real story. In January 2025, the city issued 40 rebuild permits. In February, 92. In March, 107. By April, the city was issuing 115+ permits per month, and that pace is expected to continue or accelerate through 2027.

700+ total permits have been issued as of April 2026. The median processing time is approximately 116 days. 92% of the permitted rebuilds are eligible new single-family structures. What this means: the market is shifting from "land sale" to "development opportunity." Builders are moving in. New homes are going up. The supply pipeline for finished homes will accelerate dramatically in 2027-2028.

This Is Not One Market

Pacific Palisades is not a single market. It's four or five distinct submarkets, each with its own pricing, buyer profile, and velocity. Here's what the landscape looks like:

Each of these pockets has its own velocity and buyer cohort. The Alphabet Streets is where most of the transaction velocity is - younger families, first-time lot buyers, owner-builders. The Huntington and The Bluffs skew older, wealthier, and more price-insensitive. Highlands and Marquez are the developers' playground - large parcels, privacy, and the lowest price per square foot in the community.

What the Next Four Years Look Like

If 120 permits per month is the new baseline, that means 1,440 new homes will be permitted and begin construction over the next year alone. Add that to the homes already under construction from the first wave of permits, and the community will be visibly transformed by 2028. Every street corner will have new construction. Every lot will either be sold or actively listed.

This affects land pricing in two ways: (1) In the near term (next 12 months), well-positioned lots will continue to sell quickly at fair market value. (2) In the medium term (2027-2028), as new homes come online, the land premium will compress because buyers will have the choice to either buy a lot and build, or buy a new construction home from a builder who already has five homes going up in the same pocket. This is likely to accelerate the land market over the next two to three years and then stabilize it afterward.

Who This Market Is For

The Pacific Palisades land market in 2026 is for three types of buyers: (1) Owner-builders who have a specific vision and want to build it on their own terms. (2) Developers and investors who are confident in their ability to execute a build and flip. (3) Owner-occupants who want a oceanside home in LA and recognize that buying now and building is faster than buying an old home and renovating.

It's not a market for speculators or passive investors. If you don't have a builder relationship or a specific use case in mind, buying land here is a long-term play, not a quick flip.

On Financing

Most land purchases in Pacific Palisades are being financed with construction loans or land loans from non-traditional lenders. Bank financing for raw land is difficult and expensive. If you're planning to buy and build, budget for 6-9% interest on a 24-month draw-down construction loan. Have a builder locked in before you make an offer on a lot.

Frequently Asked Questions