Million-Dollar Homes Are Slowly Sliding Toward the Pacific Ocean

Multimillion-dollar estates in the wealthy cliff-dwelling enclave of Rancho Palos Verdes in Southern California are slowly sliding toward the ocean, yet they still carry hefty price tags.

Almost 200 homes in the area are listed for sale, ranging from an $899,000 condo to a $22 million seven-bedroom mansion. However, most are not affected directly by the land movement, which is concentrated in an area called Portuguese Bend.

"Portuguese Bend is clearly on borrowed time," says LAist.

New aerial mapping showed the long-known and slow-moving landslides on the bluffs have sped up due to heavy rain in 2023 and early 2024, according to the New York Times.

"Homes in Rancho Palos Verdes began collapsing in June and August of 2023," said the outlet. "Streets have fissured. Walls have shifted, and floors have cracked open to reveal the dynamic earth below. A downed power line related to the slides started a small brush fire in August."

A $42 million buyout program is helping homeowners voluntarily sell and relocate, but some of them are taking matters into their own hands and listing their properties instead.

Homes continue to have multimillion price tags

Of the listed homes, only six mention the land movement.

"Property located in the neighborhood impacted by LAND MOVEMENT and affected by it," says a $1.2 million listing at Admirable Drive.

"Plans to remodel and fix minor land movement damages have been submitted to the city," declared another listing, this one for a $3 million home on Spindrift Lane boasting "180 degree views of the ocean directly out your living room window."

Both agents did not respond to requests from Realtor.com® for comment.

Owners fight back by listing their homes

Some owners have opted to do all they can to shore up their homes and stop the slide. One has "fought back" and listed the affected home for $2,250,000.

"The owner has fought back, having helical piers recently installed," reads the listing at 85 Vanderlip Drive. "The piers appear to be working and the house shows very few effects of the movement."

The agent did not return a call from Realtor.com seeking more information.

The Tuscan-style five-bedroom, five-bath, 4,000-square-foot estate sits on slightly over an acre of land overlooking the ocean.

The house was originally purchased from one of the founding fathers of the Federal Reserve System, Frank Vanderlip Sr., also known for being one of the primary architects of the group of communities in Rancho Palos Verdes.

"This home personifies the vision of what Palos Verdes was meant to be," says the listing. The house was originally used by Vanderlip's employees.

It is nearly 100 years old and "has been lovingly preserved and updated, ensuring that its historical integrity remains intact."

"Recent conditions have changed and land movement has swept through much of the area," the listing admits.

But it says that helical piers were recently installed to stop the slide.

Helical piers are "deep foundation solutions used to secure new or repair existing foundations," says the PierTech website.

The piers are also known as anchors, piles, or screw piles, and are threaded into the ground instead of requiring large excavation work, meant to minimize soil disturbance.

The listing says that the piers are doing their job: "New data on this property from engineering company notes minimal landslide effect to the structure in the past 7 months."

But "should the piers not suffice," other plans have been made, says the listing. "As further insurance to save the home for posterity, engineering plans have been developed for putting the home on steel beams."

Despite the hefty price tag, the listing says that the house is a bargain.

"The home is offered for a fraction of its pre-movement value ... and will offer a buyer a unique blend of elegance, comfort and breathtaking beauty, making it a true treasure to be loved by the next family lucky enough to call it home."

Indeed, the home reflects a discount: The four-bedroom house next door is estimated to be worth $3.57 million.

Will anyone buy these homes?

A short drive from the Vanderlip house is a four-bedroom, 4.5-bath home on Abalone Cove, which was recently snapped up by a couple who live in Taiwan for $9,800,000.

The sellers and agent made sure to do what they could to alleviate any concerns a buyer would have.

"This is an almost $10 million property on the cliff, so of course people were concerned," listing agent Lisa Poach tells Realtor.com.

The sellers had the property inspected by an experienced soil engineer, Tony Lee, who had given the OK to the property when they bought it 20 years ago.

"The owners were like, 'Let's just make everybody feel as comfortable as possible,'" Poach says of the decision to hire the expert.

According to the report, the house sits on volcanic rock, which turns out to be a positive.

"That's the most stable soil that exists," she says.

As for the soil engineer, one of only a few who work in the area, "He is just slammed busy," she says.

Lee did not return a call from Realtor.com before publication.

"This property is NOT located in the area of RPV experiencing active land movement," the home's listing says. "A Geological Report was recently completed that states that below the terrace deposits, volcanic rock was encountered."

Poach says the price was not affected by the positive geological assessment.

"That was not a factor in the price, no," she says, revealing that the sellers got their asking price.

"It's a one-of-a-kind house," she says, noting that the 75-year-old house was rebuilt in 2022.

The house was set to close in September after it passed inspection. However, the buyers, who live in Taiwan, were set upon by typhoons.

"Buying a fun property in California slid to the bottom of their list of priorities," says the agent.

As for the area's land movement, she says, "They are not concerned about it."

To stay or to go?

Homeowners in the area are grappling with whether to ride out the land movement or cut their losses.

Poach tells of a family in Portuguese Bend who called her several months ago.

"They are right in that area where you can't get insurance, and they called at the height of it, when they had to turn off the power for some of the area," she says. "Since then, things have calmed down a little bit."

The house was recently declared safe, but homes on either side of it weren't so fortunate.

The agent's advice to the owners?

"I said if they don't have to sell right now, then it's not the time."