The average rent for a 1-bedroom apartment in Santa Ana reached $2,295 in January 2023, reflecting a competitive rental market. For those weighing the costs of living in an apartment vs. a house in Santa Ana, it’s essential to compare the full range of monthly expenses.
The Housing Market in Santa Ana Today
Santa Ana’s housing market is characterized by limited inventory and steady demand. The city’s proximity to major employment centers like Irvine and Costa Mesa keeps the market active, even as prices rise. Developers are working to add new apartment and condo complexes downtown and along major corridors, but supply remains tight.
For renters and buyers alike, acting quickly on available properties is often necessary. Many homes receive multiple offers within days of listing. The market especially favors sellers, with the median home price up 6% year-over-year.
Renting in Santa Ana: What’s Typical?
As of early 2023, renters can expect to pay around $2,295 per month for a 1-bedroom apartment or $2,895 for a 2-bedroom in Santa Ana. Prices are highest for newer units with in-demand amenities like stainless appliances, in-unit laundry, and dedicated parking.
South Coast Metro tends to have the priciest rentals, appealing to young professionals. More affordable options can be found in the central neighborhoods of Artesia Pilar, Heninger Park, and French Park. Families often gravitate to the apartments and townhomes of northern Santa Ana.
Rent trends have been climbing steadily, with year-over-year increases around 5-8%. Vacancy rates are low at just 3%, so renters need to be proactive in their search. Most leases turn over in summer, so winter can be an opportune time to look.
Owning a Home in Santa Ana
The median home price in Santa Ana is $735,000 as of January 2023. For a typical buyer putting 10% down on a 30-year mortgage at 6.5% APR, that translates to a monthly mortgage payment around $4,185. However, the full cost of ownership also includes property taxes, insurance, maintenance, and potentially HOA fees.
Property taxes in Santa Ana average 1.1% of assessed value annually. For a $735K home, that’s about $675 per month. Homeowners insurance runs $80-120 monthly for most single-family homes. Many newer developments have HOA dues ranging from $200-500/month.
Altogether, the monthly cost of owning a median-priced home in Santa Ana is roughly $4,500-5,000 per month. That’s significantly higher than renting, but offers the benefits of equity, tax deductions, and more control over the property.
Renters vs. Homeowners: Who Lives Where?
Santa Ana’s homeownership rate is around 45%, well below the national average of 64%. The high cost of entry keeps many residents in the rental market longer. Young professionals, especially those under 35, are predominantly renters. They’re often drawn to the amenity-rich apartments of South Coast Metro and downtown.
Families are split between renting and owning, depending on financial resources. Longtime residents are more likely to own, having purchased before the recent run-up in prices. Retirees tend to have high ownership rates. Senior living communities like Buena Vista and Sunrise of Santa Ana offer an appealing option for those downsizing.
Cultural factors also influence tenure. Over 75% of Santa Ana residents are Latino or Hispanic, a demographic that traditionally has lower homeownership rates compared to other groups. Down payment and credit score requirements can be significant barriers.
Typical Monthly Housing Costs in Santa Ana
Here’s what housing costs might look like each month in Santa Ana:
| Expense | Renting (1BR) | Owning |
|---|---|---|
| Rent/Mortgage | $2,295 | $4,185 |
| Property Tax | $0 | $675 |
| Insurance | $15 (renters) | $100 |
| Utilities | $150 | $225 |
| HOA | $0 | $350 |
| Total | $2,460 | $5,535 |
Estimates reflect mid-range properties and average usage.
What’s Driving Costs Up or Down?
Several factors are putting upward pressure on Santa Ana housing costs. The strong job market and growing population fuel demand for limited housing supply. Zoning restrictions and high land costs make it challenging to build enough new units to keep pace.
At the same time, rising mortgage rates are dampening price growth. Rates nearly doubled from 3% to 6% in 2022, significantly cutting into affordability. That’s forcing some would-be buyers to remain renters longer. Rents are rising as a result, but not as sharply as home values.
New apartment construction should help ease the supply crunch over time. The 1,100-unit Warner mixed-use development is one of several projects adding density along major corridors. The city is also exploring policies to boost affordability, like inclusionary zoning and rent control.
FAQs About Housing in Santa Ana
- Is Santa Ana affordable to live in? Compared to other parts of Orange County, Santa Ana offers relative value. But the cost of housing is still high compared to national averages, especially for homeownership.
- Why are housing prices changing? Demand continues to outpace supply, putting upward pressure on rents and home values. But rising mortgage rates are moderating price growth.
- How does Santa Ana compare to nearby cities? Housing costs in Santa Ana are lower than Irvine, Newport Beach, and Costa Mesa. But prices are higher than in Anaheim, Orange, and Tustin.
Making Smart Housing Decisions in Santa Ana
For most Santa Ana residents, housing is the biggest monthly expense. Renting remains more affordable than owning, but both come at a premium. Locking in a lease or purchase price sooner than later is advisable, as costs are projected to keep climbing.
Buyers should budget for the full cost of ownership, beyond the list price. Investing in an energy-efficient home can help manage utility costs long-term. And in many neighborhoods, a garage is a must-have for parking and storage.
Renters have more flexibility but also face competition for desirable units. Being prepared with deposits and documents can help secure an apartment ahead of other applicants. Opting for a smaller floorplan or less central location can make rent more manageable.