Is it cheaper to rent or buy right now in Costa Mesa, CA? The answer depends on a variety of factors, from your income and lifestyle to the overall cost of living in Costa Mesa. In this article, we’ll break down the key differences between renting an apartment and owning a house, so you can make an informed decision about your housing.
The Housing Market in Costa Mesa Today
Costa Mesa’s housing market has seen steady growth in recent years, driven by a strong local economy and high demand for housing. The city’s proximity to major employment centers like Irvine and Newport Beach has made it an attractive option for professionals and families alike.
However, this demand has also led to rising housing costs. According to Zillow, the median home value in Costa Mesa is currently $1,059,226 — a 5.1% increase over the past year. Rental prices have also been on the rise, with the average rent for a one-bedroom apartment now hovering around $2,200 per month.
Despite these challenges, Costa Mesa remains a popular choice for those seeking a high quality of life in Orange County. The city boasts excellent schools, diverse dining and shopping options, and easy access to beaches and outdoor recreation.
Renting in Costa Mesa: What’s Typical?
For many residents, renting is the most affordable and flexible housing option in Costa Mesa. The city offers a wide range of rental properties, from studio apartments to spacious townhomes.
According to RentCafe, the average rent for a one-bedroom apartment in Costa Mesa is currently $2,196 per month, while a two-bedroom unit will set you back around $2,772. These prices can vary significantly depending on the location, age, and amenities of the property.
Popular renter areas in Costa Mesa include the trendy SoBeCa (South on Bristol Entertainment, Culture, and Arts) district, which offers a mix of modern apartments and converted lofts, as well as the more suburban neighborhoods around South Coast Plaza. Young professionals and couples tend to gravitate towards the city’s newer apartment complexes, which often include perks like fitness centers, swimming pools, and on-site parking.
Owning a Home in Costa Mesa
For those looking to put down roots in Costa Mesa, homeownership can be a rewarding investment — albeit a costly one. The median home price in the city is currently $1,059,226, which translates to a monthly mortgage payment of around $4,500 (assuming a 20% down payment and a 30-year fixed-rate mortgage at 3.5%).
On top of the mortgage, homeowners in Costa Mesa can expect to pay property taxes of around 1.1% of their home’s assessed value, as well as homeowners insurance and potentially HOA dues. For a median-priced home, these additional costs can add up to around $1,000 per month.
While these expenses may seem daunting, owning a home in Costa Mesa can also offer significant benefits, from building long-term wealth to enjoying more space and privacy. Many of the city’s most desirable neighborhoods, such as Mesa Verde and Eastside Costa Mesa, are dominated by single-family homes with spacious yards and mature landscaping.
Renters vs. Homeowners: Who Lives Where?
According to the U.S. Census Bureau, around 60% of Costa Mesa residents are renters, while 40% own their homes. This split is fairly typical for a city of its size and demographics.
Renters in Costa Mesa tend to be younger and more mobile, with many choosing to live in apartments or shared houses while they establish their careers or save up for a down payment. The city’s large student population, drawn by nearby colleges like Orange Coast College and UC Irvine, also contributes to the high demand for rental housing.
Homeowners, on the other hand, are more likely to be older, married, and have children. They often prioritize factors like school quality, safety, and community amenities when choosing where to live. While the upfront costs of homeownership can be a barrier for some, many see it as a long-term investment in their family’s future.
| Housing Cost | Renting (1BR) | Owning (Median Home) |
|---|---|---|
| Rent/Mortgage | $2,196 | $4,500 |
| Property Tax | – | $975 |
| Utilities | $150 | $250 |
| Insurance | $15 (renters) | $80 (homeowners) |
| HOA | – | $250 |
| Total | $2,361 | $6,055 |
Estimates reflect mid-range properties and average usage.
What’s Driving Costs Up or Down?
Like many cities in Southern California, Costa Mesa’s housing market is heavily influenced by supply and demand. With limited land available for new development and strict zoning regulations, the city has struggled to keep up with the growing demand for housing.
At the same time, Costa Mesa’s strong job market and desirable location have made it an increasingly popular destination for high-income earners. The city’s median household income of $84,138 is well above the national average, which has helped to drive up prices in certain neighborhoods.
Despite these pressures, Costa Mesa has taken steps to address its housing challenges in recent years. The city has approved several new apartment complexes and mixed-use developments, particularly in the downtown area, which could help to ease the burden on renters. It has also explored policies like rent control and affordable housing mandates, though these measures have faced opposition from some property owners and developers.
FAQs About Housing in Costa Mesa
- Is Costa Mesa affordable to live in?
Compared to some of its neighbors, like Newport Beach and Irvine, Costa Mesa is relatively affordable. However, housing costs are still high compared to the national average, particularly for renters. - Why are housing prices changing?
Housing prices in Costa Mesa are influenced by a variety of factors, including supply and demand, economic growth, and local policies. In recent years, prices have been driven up by a strong job market and limited housing inventory. - How does Costa Mesa compare to nearby cities?
Costa Mesa is generally more affordable than coastal cities like Newport Beach and Laguna Beach, but pricier than inland areas like Santa Ana and Tustin. It offers a good balance of amenities, safety, and accessibility for many residents.
Making Smart Housing Decisions in Costa Mesa
Whether you’re looking to rent or buy in Costa Mesa, it’s important to do your research and weigh your options carefully. Consider factors like your budget, lifestyle, and long-term goals when deciding which type of housing is right for you.
For renters, it’s essential to understand the full cost of living in an apartment, including utilities, parking, and other fees. You may also want to explore different neighborhoods and property types to find the best fit for your needs and budget.
If you’re considering homeownership, be sure to factor in all of the associated costs, from property taxes and insurance to maintenance and repairs. It’s also a good idea to work with a local real estate agent who can help you navigate the competitive market and find properties that match your criteria.
Ultimately, the decision to rent or buy in Costa Mesa will depend on your unique circumstances and priorities. By understanding the local housing market and weighing your options carefully, you can make an informed choice that sets you up for long-term success.