EXCLUSIVE: Nicolas Cage 'Completely Devastated' Over Sinkhole Wrecking Malibu Mansion
Nicolas Cage's Malibu mansion was destroyed following a sinkhole.
Sept. 9 2026, Published 8:00 p.m. ET
Nicolas Cage is facing another painful property setback after a massive sinkhole tore through the driveway of his multimillion-dollar Malibu mansion – years after the Hollywood star rebuilt his finances following a spectacular real-estate-fueled collapse.
Cage, 62, bought the four-level oceanfront property for $10.5million in 2024, but, as RadarOnline.com reported, the driveway collapsed early Tuesday, September 8, amid coastal erosion, rupturing water and gas lines and prompting authorities to order evacuations as Hurricane Marie threatened the Southern California coastline with high tides and rain.
Nicolas Cage 'Devastated' By Massive Sinkhole
Cage faces a major setback after a sinkhole tore through his driveway.
A source familiar with the situation claimed to Radar: 'This is a major setback for Nic involving a spectacular property that he paid an enormous amount of money for. Given everything he has previously been through with real estate and his finances, the prospect of substantial work and expense associated with another property has left him completely devastated."
Fire crews were dispatched to the vacant home at about 5.45 am following reports of a suspected gas-main break, according to ABC7.
Officials subsequently discovered that erosion had washed away ground beneath the driveway. Southern California Gas Company shut off gas supplies to the affected area.
The City of Malibu declared a local emergency over the incident, saying: "The Director of Emergency Services of the City of Malibu has declared the existence of a local emergency following a large sinkhole forming near 31630 Sea Level Drive."
Officials warned the expanding hole was restricting access for residents and emergency services, while an evacuation order was imposed on affected properties.
Authorities ordered evacuations after a sinkhole formed near Cage's Malibu home.
Inside His Brutal Real Estate Collapse
Cage bought the four-level oceanfront Malibu property for $10.5million in 2024.
The incident carries particular resonance for Cage because of his extraordinary history with property.
The Spider-Noir actor once assembled a sprawling international portfolio encompassing homes in Malibu, New Orleans and the Caribbean and castles in Germany and England.
His purchases contributed to severe financial difficulties after his fortune, once estimated at $150million, collapsed amid extravagant spending, the real-estate crash, and substantial tax liabilities.
Cage ultimately owed the IRS roughly $14million in back taxes and penalties. He blamed former business manager Sam Levin for failing to pay taxes and steering him toward poor investments.
Levin countersued, alleging Cage had spent beyond his means. Rather than declare bankruptcy, Cage embarked on an intense period of filmmaking, accepting numerous roles as he worked to repay his debts.
Nicolas Cage's Bizarre Quest For the Holy Grail
The Oscar winner now faces another property setback after years of financial difficulties.
His fascination with unusual properties was not purely financial. Cage previously described embarking upon what amounted to a mythological search for the Holy Grail.
He told the New York Times: "That was the time when I almost went on – you might call it a grail quest. I started following mythology, and I was finding properties that aligned with that. It was almost like National Treasure."
Explaining how that fascination took him across Britain and the United States, Cage added: "For me it was all about where was the grail? Was it here? Was it there? Is it at Glastonbury? Does it exist?"
His eventual conclusion was considerably simpler.
Cage said: "What I ultimately found is: 'What is the Grail but Earth itself?'"
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How Work Saved Him From Bankruptcy
Cage worked for years to repay debts to creditors and the IRS.
To avoid declaring formal bankruptcy in recent years, Cage took on a relentless, massive volume of work.
For more than a decade, he starred in dozens of straight-to-video and low-budget action films, famously accepting almost any role offered to pay off his creditors and the IRS.
Cage later referred to his work as his "guardian angel," which kept him going through a dark time, eventually returning to acclaimed, high-quality roles in the last six years.
