Orange County’s Housing Crisis: Rising Rents & Limited Supply

In February 2022, Orange County residents found themselves at the center of a worsening housing crisis. As home prices soared and rent increases outpaced income growth, affordability became a major concern. Cities like Fullerton, Costa Mesa, and Huntington Beach became battlegrounds for debates over rent control, zoning laws, and solutions to a housing market that left many struggling to find a place to live.

The Perfect Storm: Why Are Prices So High?

A combination of factors contributed to Orange County’s housing affordability crisis.

• Limited Housing Supply – A shortage of new construction and strict zoning laws prevented an adequate number of homes from being built, making available properties more expensive.

• Soaring Demand – As remote work increased, more people moved to suburban areas, further driving up demand for housing.

• Investor Influence – Large real estate investors and developers purchased properties, reducing availability for first-time buyers and renters.

• Lack of Rent Control – Many Orange County cities had no rent caps, allowing landlords to raise prices significantly in response to market trends.

Spotlight on Three Cities: Fullerton, Costa Mesa, and Huntington Beach

Fullerton: The Debate Over Rent Control

Fullerton saw heated discussions over rent control measures as tenants faced steep rent hikes. Many residents pushed for regulations to cap annual increases, while landlords argued that such policies would discourage investment in rental properties.

City Council meetings drew passionate testimonies, with renters sharing stories of being priced out of their longtime homes. Despite growing support for rent stabilization policies, no major changes were implemented by early 2022. Adrian Meza, a writer for the Fullerton Observer, has actively advocated for rent control in Fullerton. "The idea that we need more housing, is not going to change, we needed housing 10 years ago, but housing prices were 50% less than they are now. The only difference is that now less companies hold more of the market"

Costa Mesa: Zoning Laws & Housing Development

Costa Mesa struggled with restrictive zoning laws that limited the construction of multi-family housing. While some officials pushed for high-density developments to increase affordable housing options, many homeowners resisted, citing concerns over congestion and neighborhood character.

Developers proposed mixed-use projects to combine residential and commercial spaces, but approvals moved slowly, leaving many renters with few options.

Huntington Beach: Balancing Growth & Community Resistance

Known for its beachside properties and suburban feel, Huntington Beach faced significant opposition to large-scale housing developments. The city had been slow to approve new affordable housing projects, and local resistance to state mandates for increased housing density remained strong.

Despite state pressure to meet housing quotas, many residents opposed apartment complexes and townhomes, fearing they would change the city’s identity. The result? Housing supply remained low, and rental prices continued to climb.

What’s Next for Orange County Housing?

By early 2022, it was clear that Orange County’s housing crisis wasn’t going away. While some local leaders pushed for policy changes, the battle between housing advocates, landlords, and city governments made progress slow.

Potential solutions included:

• Expanding rent control policies to stabilize costs.

• Easing zoning restrictions to allow for more housing construction.

• Investing in affordable housing projects to support lower-income residents.

As debates continued, one thing remained clear: without significant action, the affordability crisis would only worsen, leaving many Orange County residents wondering if they could afford to stay in their communities.