California's housing crisis has reached a new extreme, with a burned-out, uninhabitable home in metropolitan Los Angeles fetching $1 million. The ranch-style property in Torrance, featuring three bedrooms and two bathrooms, sold for the eye-popping sum on May 11, 2026, despite extensive fire damage that includes a gaping hole in the roof.
Market Context
According to multiple real estate websites, the boarded-up home sold for 2 percent above its list price. Rhett Winchell, chief financial officer of NDA Real Estate in Calabasas, noted that the property generated tremendous interest, largely due to its desirable location. The sale underscores what the California Legislative Analyst's Office describes as a "serious housing shortage" that has driven costs "rising rapidly for decades."
As of March 2026, the median price of a "mid-tier" home in California stood at $775,000, more than double the national average of $366,000. The Torrance property, though unlivable, sold for the land value, with comparable homes in move-in condition regularly commanding $1.5 million in the area.
History of the Property
The house had been vacant since a fire broke out around 4 a.m. on February 1, 2024. The blaze, ignited by a heating grate in the floor, forced an older man to escape through an open window. He survived the incident but later died. The property was sold at a probate auction last year for a high bid of $980,000, with the winner paying a total of $1.08 million. That buyer resold the house on May 11, 2026.
Policy Responses
Outgoing Governor Gavin Newsom has signed several bills aimed at increasing California's housing stock, including measures that spurred construction of accessory dwelling units. However, Eric McGhee, policy director at the Public Policy Institute of California, expressed uncertainty about their effectiveness, noting that such units could be used for home offices, "man caves," or short-term rentals rather than addressing the core shortage.
McGhee attributed the housing crisis to post-World War II backlash, where local governments imposed restrictions on development in the name of environmentalism or preserving community character. He advocated for easing permitting processes and promoting modular, factory-based construction to make housing building easier, faster, and cheaper.
"This is a long-term problem we've created and it's going to take a lot of time to dig our way out of it," McGhee said. Estimates suggest California needs an additional 2.2 million housing units—14.9 percent of the current supply—to meet demand, according to the American Enterprise Institute.
