Orange County/Cities/Laguna Beach

CITY PROFILE

Laguna Beach

City-Level Structural Housing Profile

Incorporated City | Orange County, California

Laguna Beach exhibits high structural supply rigidity within Orange County's coastal housing framework. Geographic containment, limited redevelopment capacity, aging housing stock, concentrated hazard overlay exposure, and low annual transaction velocity collectively define its structural supply profile.

Housing Stock Overview

2010 Census

12,923

housing units

2020 DOF / SCAG Baseline

13,027

housing units

Net 2010–2020 Growth

+104

units (+0.8%)

Land Area

8.84 square miles

Housing Density

~1,474 housing units per square mile

(13,027 units ÷ 8.84 square miles)

Laguna Beach has experienced negligible structural expansion over the past decade. Unit growth has been limited to small infill additions and redevelopment of existing parcels. The city is effectively built out, with no remaining large-scale greenfield subdivision capacity.

Housing Vintage & Structural Age

  • % built before 1970: 42.3% (ACS 2019–2023)
  • % built 1970–1999: 38.1% (ACS 2019–2023)
  • % built 2000–present: 19.6% (ACS 2019–2023)
  • Median year built: 1973

An older housing base reinforces supply rigidity, as redevelopment is subject to zoning constraints, coastal oversight, and structural retrofitting requirements.

Ownership & Occupancy Structure

Owner-Occupied Rate (ACS 2019–2023)

66.1%

Total Vacancy Rate

18.2%

of housing units

Seasonal / Recreational Vacancy Share

12.7%

of total vacancy

A material share of vacant units is classified as seasonal, recreational, or occasional use. Elevated seasonal ownership reduces effective circulating inventory relative to total housing stock.

Annual Transaction Volume (Calendar Year 2025 MLS Data)

Total Closed Residential Sales (Full Year 2025)

315

Represents 2.42% annual turnover relative to total housing stock.

Property Type Composition

Single-Family Detached254 (80.6%)
Condominiums / Townhomes45 (14.3%)
Multi-Unit Properties16 (5.1%)

Price Metrics (2025)

Median Sale Price$2,850,000
Mean Sale Price$3,580,134
Price Range$800,000 – $22,000,000
Average Monthly Sales Volume26.3 transactions

2025 Sales Distribution by Price Band

Under $2M22.2%
$2M–$5M60.0%
$5M–$10M14.9%
$10M+2.9%

The $2M–$5M segment represents the core liquidity band within the city.

Annual Turnover Rate

Annual Sales315
Housing Units Baseline13,027

Estimated Annual Turnover Rate

2.42%

This reflects low transaction velocity relative to total housing stock, consistent with extended holding patterns in high-cost coastal jurisdictions.

Permit Intensity & Long-Term Unit Growth

2000–2020 Change

Single-family units+479
Multi-family units–382
Net increase+97 units over 20 years

Net unit growth over 20 years represents less than 1% cumulative expansion relative to total housing base.

Recent RHNA Allocation (2021–2029)

394 units

Permit intensity remains low relative to total housing stock. Future additions are primarily tied to targeted rezoning, identified opportunity sites, and accessory dwelling unit assumptions rather than large-scale subdivision expansion.

Hazard & Regulatory Overlay

Geographic Constraints

  • Steep hillside and canyon terrain
  • Coastal bluff setback standards

Regulatory Constraints

  • 87% of total land area within Very High Fire Hazard Severity Zone (VHFHSZ)
  • Approximately 65% of buildable property within VHFHSZ
  • Coastal Act oversight
  • CEQA review exposure

Hazard designation and regulatory layering materially affect redevelopment feasibility and insurance cost structure.

Relative to Newport Beach and Huntington Beach, Laguna Beach demonstrates higher structural constraint intensity across geographic containment, hazard exposure, and redevelopment elasticity.

Comparative Structural Position Within Coastal Orange County

  • Smaller land footprint
  • Lower historical unit growth
  • Higher concentration of hillside terrain
  • Higher wildfire hazard exposure
  • Higher median pricing
  • Lower annual turnover rate

Laguna Beach exhibits elevated structural rigidity relative to most other coastal Orange County cities.

STRUCTURAL SUPPLY PROFILE RATING

9 / 10

High Constraint Coastal Jurisdiction

Laguna Beach demonstrates minimal decade-over-decade housing expansion, built-out geography, low annual turnover (2.42%), elevated seasonal ownership share, aging housing stock, and significant hazard overlay. Supply constraints are structural, regulatory, and geographic.

Rating derived from Structural Supply Index (Geographic Containment + Regulatory Overlay + Redevelopment Elasticity + Transaction Velocity Model).