As of March 26, 2025, the housing market in Laguna Hills, California, remains a topic of keen interest for homebuyers, sellers, and real estate enthusiasts alike. Nestled in the heart of Orange County, this picturesque city is known for its rolling hills, family-friendly neighborhoods, and proximity to major employment hubs like Irvine and Costa Mesa. However, one question continues to loom large: Are homes still scarce in Laguna Hills? In this blog post, we’ll dive deep into the current state of the Laguna Hills housing inventory, explore the factors driving supply and demand, and offer insights for those navigating this competitive market.
The Current State of Housing Inventory in Laguna Hills
Housing inventory—the number of homes actively listed for sale—serves as a critical indicator of market health. A low inventory typically signals a seller’s market, where demand outpaces supply, driving up prices and intensifying competition among buyers. Conversely, a growing inventory can shift the balance toward buyers, offering more choices and potentially softening price growth.
In Laguna Hills, the housing inventory has been a point of contention for years. Historically, this affluent suburb has struggled with limited supply, a trend that mirrors much of Orange County. As of late 2024, data suggests that while inventory levels have fluctuated, homes remain relatively scarce compared to buyer demand. For instance, in December 2024, there were 57 homes for sale in Laguna Hills, with a median price of $1,148,300—an increase of 3.9% from the previous year. This figure, while modest, reflects a market where supply is still tight, even as the number of listings has seen slight upticks month-over-month.
Breaking it down by bedroom type, the December 2024 inventory showed notable declines: 1-bedroom homes dropped by 33.3%, 2-bedroom homes by 40%, and 3-bedroom homes by 35%, while 4-bedroom homes held steady and 5-bedroom homes saw a 9.1% decrease. These reductions suggest that even as new listings emerge, they’re quickly absorbed by eager buyers, keeping the overall supply constrained.
A Seller’s Market Persists
Laguna Hills has consistently been classified as a seller’s market, a designation that holds true into early 2025. In a seller’s market, the demand for homes exceeds the available supply, giving sellers the upper hand in negotiations. This dynamic is evident in the speed at which homes sell and the prices they command. In December 2024, homes in Laguna Hills spent an average of 36 days on the market—a 69% increase from the previous year—yet 68% of homes sold within 30 days. This indicates that while properties may linger slightly longer than in peak pandemic years, buyer interest remains robust.
Price trends further underscore the scarcity. The median sale price in February 2025 reached $1.4 million, a staggering 47.3% jump from the previous year, according to some reports. While this figure reflects a highly competitive market, it’s worth noting that 57.9% of homes sold below asking price in December 2024, hinting at a slight softening in buyer willingness to overbid. Still, with 32% of homes selling above asking, the pressure on inventory remains palpable.
Why Is Inventory So Low?
Several factors contribute to the persistent scarcity of homes in Laguna Hills:
1. High Demand
Laguna Hills’ appeal is undeniable. With top-rated schools in the Saddleback Valley Unified School District, scenic trails, and a low crime rate, it’s a magnet for families and professionals alike. Its central location—offering commutes of 15 to 30 minutes to Irvine and Costa Mesa—adds to its allure, especially as remote work declines and office returns increase. This sustained demand keeps inventory from building up, as homes are snapped up almost as soon as they hit the market.
2. Limited New Construction
Unlike sprawling exurbs, Laguna Hills faces geographic and regulatory constraints that limit new housing development. The city’s rolling hills and established neighborhoods leave little room for large-scale projects. Additionally, California’s stringent zoning laws and environmental regulations slow the pace of construction. The city’s Regional Housing Needs Assessment (RHNA) allocation for 2021-2029 calls for 1,985 new units, but meeting this goal requires creative solutions like redevelopment, which progresses slowly.
3. Reluctant Sellers
Many homeowners in Laguna Hills are staying put. With property values soaring—appreciation rates hit 9.46% annually in recent years—current residents have little incentive to sell unless compelled by life changes. Low interest rates locked in during the pandemic further discourage selling, as homeowners cling to favorable mortgage terms rather than face today’s higher rates.
4. Economic Factors
Rising interest rates in 2023 and 2024 have cooled some markets nationwide, but Orange County’s resilience stands out. While higher borrowing costs might deter some buyers, Laguna Hills’ affluent buyer pool—often cash buyers or those relocating from pricier metros like San Francisco—keeps demand steady. This economic stability ensures that inventory doesn’t linger long enough to accumulate.
Comparing Laguna Hills to Nearby Markets
To put Laguna Hills’ scarcity in context, let’s look at neighboring cities. Laguna Niguel, just south, had 173 homes for sale in February 2025, with a median price of $1,368,500—an 11.1% increase year-over-year. Despite a larger inventory, it remains a seller’s market, with homes selling in 34 days on average. Meanwhile, Laguna Beach, a coastal gem, boasted 238 listings in February 2025, but its $3,030,833 median price and 97-day average listing age signal a buyer’s market, where high costs and longer sales times reflect less urgency.
Laguna Woods, a retirement community, offers a stark contrast with 163 homes for sale in December 2024 at a median price of $419,812. Its 37-day average listing age and 54% of homes selling below asking suggest a less frenetic pace. These comparisons highlight Laguna Hills’ unique position: pricier than Laguna Woods, more affordable than Laguna Beach, and scarcer than Laguna Niguel.
Are Homes Still Scarce in 2025?
The short answer is yes—homes in Laguna Hills are still scarce relative to demand. While inventory has crept up slightly (e.g., from 3,548 to 3,619 homes countywide in recent weeks), it’s nowhere near the levels needed for a balanced market. Orange County as a whole saw pending sales rise to 1,869, indicating that buyer appetite continues to outstrip supply. In Laguna Hills specifically, the 57 homes listed in December 2024 represent a tiny fraction of the city’s 11,525 housing units, reinforcing the scarcity narrative.
However, there are glimmers of change. The uptick in days on market (from 19 days in August 2024 to 36 days in December) and the percentage of homes selling below asking suggest that the market may be cooling ever so slightly. This could be a boon for buyers willing to wait out the frenzy, though it’s unlikely to tip the scales fully into a buyer’s market anytime soon.
Navigating the Market: Tips for Buyers and Sellers
For Buyers
- Act Quickly: With homes selling in as little as 22 days (per February 2025 data), hesitation can cost you. Pre-approve your mortgage and be ready to make an offer.
- Be Flexible: Inventory shortages mean you might need to compromise on size or location. Consider condos or townhomes, which make up a significant portion of listings.
- Leverage Negotiation: With over half of homes selling below asking in December 2024, there’s room to negotiate, especially on properties lingering past 30 days.
For Sellers
- Price Competitively: Overpricing can lead to longer days on market, as seen with the 21% of homes sold after 90 days in December 2024. Price right to attract multiple offers.
- Highlight Appeal: Emphasize Laguna Hills’ lifestyle perks—schools, parks, and proximity to jobs—to stand out in a crowded seller’s market.
- Time It Right: Spring remains a peak season, but early 2025 data suggests winter listings still move fast if priced well.
The Future of Laguna Hills Housing
Looking ahead, the scarcity of homes in Laguna Hills is unlikely to resolve quickly. The city’s 2021-2029 Housing Element, adopted in March 2024, aims to address the RHNA allocation, but progress is gradual. Economic factors like interest rates and regional job growth will also shape inventory levels. If rates drop, demand could surge, further straining supply. Conversely, a sustained increase in listings could ease pressure, though that seems distant given current trends.
For now, Laguna Hills remains a hotbed of real estate activity, where scarcity drives value and competition. Whether you’re buying or selling, understanding the inventory dynamics is key to success in this vibrant market.
Conclusion
So, are homes still scarce in Laguna Hills? Absolutely. The interplay of high demand, limited construction, and reluctant sellers keeps inventory tight, cementing its status as a seller’s market in March 2025. Yet, subtle shifts—like longer days on market and more homes selling below asking—hint at a market in transition. For those willing to navigate its challenges, Laguna Hills offers both opportunity and a chance to call one of California’s most desirable suburbs home. Stay informed, act decisively, and you just might find your place in this sought-after community.
