Ritzy LA Enclave Suffers Staggering Wealth Wipeout as Mansion Owners Slam Newsom

Millionaire homeowners blast California governor for failing to save their multi-million dollar homes from crumbling into the ocean

Mar. 21, 2026 at 12:07am

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Residents of the posh coastal city of Rancho Palos Verdes in Los Angeles are seeing their wealth wiped out as a massive landslide accelerates, leaving their homes teetering on the edge of a cliff. Homeowners are blaming Governor Gavin Newsom for vetoing a bill that would have provided funding to address the ongoing disaster, and are also criticizing Congressman Ted Lieu for not doing enough to help save their properties.

Why it matters

The situation in Rancho Palos Verdes highlights the growing threat of natural disasters exacerbated by climate change, and the challenges faced by local and state governments in responding to such crises. The wealth wipeout experienced by these millionaire homeowners also raises questions about the role of government in protecting private property and the potential for more widespread displacement in affluent coastal communities.

The details

A series of landslides, accelerated by heavy rains, have caused significant damage to homes in the Rancho Palos Verdes area. Residents report that the value of their multi-million dollar homes has plummeted, with one homeowner saying his $2.5 million home is now worth just $515,000. Utilities have been disrupted, and homeowners have had to install expensive repairs like solar panels and steel girders to try to save their properties. The situation has been exacerbated by the failure of local authorities to maintain infrastructure like underground water drainage systems.

  • In February 2025, Assemblyman Al Muratsuchi introduced a bill (AB 986) that would have provided funding to address the landslides.
  • On October 1, 2025, Governor Gavin Newsom vetoed AB 986.
  • On September 28, 2025, a large chunk of cliff fell into the rocks below, causing significant damage to a rental property on Marguerite Drive.

The players

Gavin Newsom

The governor of California who vetoed a bill that would have provided funding to address the landslides in Rancho Palos Verdes.

Ted Lieu

The U.S. Representative for California's 36th congressional district, which includes Rancho Palos Verdes. Residents are critical of him for not doing enough to help save their homes.

Al Muratsuchi

The California Assemblyman who introduced AB 986, a bill that would have provided funding to address the landslides in Rancho Palos Verdes.

Peter Pettler

An 83-year-old resident of Rancho Palos Verdes who has seen the value of his $2.5 million home plummet to just $515,000 due to the landslides.

Eric Barba

An Oscar-winning visual effects supervisor who purchased a home in the Rancho Palos Verdes area in 2021, and is now dealing with the fallout from the landslides.

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What they’re saying

“This is a major disaster. He should have passed the bill. I wish he'd done something to help.”

— Peter Pettler, Rancho Palos Verdes resident

“It's such a beautiful place to live that no one wants to leave.”

— Eric Barba, Homeowner

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights the growing threat of natural disasters exacerbated by climate change, and the challenges faced by local and state governments in responding to such crises. It also raises questions about the role of government in protecting private property and the potential for more widespread displacement in affluent coastal communities.