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Property prices in Santa Ana are expected to continue rising in 2026, though at a more moderate pace than the dramatic growth seen over the past five years. With mortgage rates stabilizing around 6.67% and new construction projects adding inventory, the market is showing signs of cooling while maintaining upward momentum driven by steady population growth and employment gains in Orange County.
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Santa Ana's median home price currently sits at $825,000-$895,000, having increased by approximately $225,000-$295,000 since 2020.
The market shows continued growth potential with 1,583 new residential units planned for construction starting January 2026, while rental prices for two-bedroom apartments have reached $2,820-$2,937.
| Market Indicator | Current Status (2025) | 2026 Outlook |
|---|---|---|
| Median Home Price | $825,000-$895,000 | 5-7% increase expected |
| Annual Price Growth | 7.3% (10-year average) | Moderating to 4-6% |
| Homes Sold (Monthly) | 85-91 units | Stable with seasonal variation |
| Mortgage Rates | 6.67% (30-year fixed) | Expected to stabilize 6.5-7% |
| New Construction | Planning phase | 1,583 units breaking ground |
| Rental Prices (2BR) | $2,820-$2,937 | 3-5% annual increase |
| Population Growth | Steady | Following OC 7.4% trend through 2040 |
What has been the average annual home price growth rate in Santa Ana over the past 10 years?
Santa Ana home values have appreciated at 7.3% per year on average over the past decade.
This represents a cumulative appreciation of roughly 103% during the entire 10-year period. The growth rate has been consistently strong, driven by Santa Ana's strategic location in Orange County and limited housing supply relative to demand.
The 7.3% annual growth significantly outpaced national averages and reflects the broader California housing market dynamics. During this period, Santa Ana benefited from its proximity to employment centers, transportation infrastructure, and ongoing urban redevelopment initiatives.
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How much did the median home price increase in Santa Ana from 2020 to 2025 in absolute dollar terms?
The median home price in Santa Ana increased by approximately $225,000 to $295,000 between 2020 and 2025.
In 2020, the median price was around $600,000 based on historical data trends. As of 2025, the median price ranges between $825,000 and $895,000, representing a significant jump in absolute terms.
This substantial increase reflects the pandemic-driven housing boom, low interest rates during 2020-2022, and continued population growth in Orange County. The price appreciation during this five-year period was particularly steep compared to historical norms.
The acceleration in price growth during this period was influenced by remote work trends, supply chain disruptions affecting new construction, and increased investor activity in the California real estate market.
What is the current median home price in Santa Ana, and how does it compare to neighboring cities?
Santa Ana's current median home price ranges between $825,000 and $895,000 as of August 2025.
| City | Median Home Price (August 2025) | Price Difference vs Santa Ana |
|---|---|---|
| Santa Ana | $825,000-$895,000 | Base comparison |
| Irvine | $1,600,000 | +$705,000 to +$775,000 |
| Anaheim | $865,000-$900,000 | Similar or slightly higher |
| Orange County Average | ~$1,200,000 | +$305,000 to +$375,000 |
| California Statewide | ~$850,000 | Similar to state average |
How many homes were sold in Santa Ana in 2024 and 2025, and what was the year-over-year percentage change?
Santa Ana home sales have shown positive year-over-year growth despite broader market cooling trends.
In May 2025, there were 85 homes sold or pending. By July 2025, 91 homes were sold, representing approximately a 12% year-over-year increase compared to 81 homes sold in July 2024.
October 2024 data showed 79 homes sold, which was a 14.5% increase compared to the same month in the previous year. These numbers indicate steady demand despite higher mortgage rates and increased inventory levels.
The consistent year-over-year growth in sales volume suggests that Santa Ana's market remains relatively resilient compared to other California markets that have experienced more significant cooling.
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What is the current inventory of homes for sale in Santa Ana, measured in months of supply?
As of May 2025, there were 400 active listings in Santa Ana, with inventory showing gradual expansion.
While specific months of supply data isn't directly available, inventory grew 5.5% month-over-month in May 2025, indicating a gradual loosening of the tight market conditions that characterized previous years.
Based on the sales pace of 85-91 homes per month and 400 active listings, the estimated months of supply would be approximately 4.4 to 4.7 months. This represents a balanced to slightly buyer-favorable market, as six months of supply is typically considered equilibrium.
The increasing inventory levels suggest that the extreme seller's market conditions of 2021-2023 are moderating, though the market remains competitive for buyers.
What is the forecasted population growth for Santa Ana between 2025 and 2030, and how many new housing units are planned?
Santa Ana is expected to follow Orange County's overall population growth trend of approximately 7.4% by 2040.
For the 2025-2030 period, this translates to roughly 1-2% annual population growth. The city has already exceeded its housing allocation goals, with 4,177 permits issued by December 2023 against a requirement of 3,137 units for the 2021-2029 period.
The most significant development project is The Village Santa Ana Specific Plan, which will add up to 1,583 residential units beginning construction in January 2026. This represents substantial new supply coming to market.
Additional smaller-scale developments and infill projects are expected to contribute another 500-800 units by 2030, helping to address the ongoing housing shortage in Orange County.
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What is the average household income in Santa Ana today, and how has it changed compared to five years ago?
The current median household income in Santa Ana is $88,354 as of 2023 data.
This represents a 3.4% increase from $85,431 in 2020, which is relatively modest growth over the five-year period. The average per capita income stands at $39,600, reflecting the city's diverse economic profile.
The income growth has not kept pace with the rapid appreciation in home prices during the same period, contributing to affordability challenges for local residents. This income-to-housing-cost gap is a significant factor affecting homeownership rates in the city.
Employment growth in Orange County's key sectors including technology, healthcare, and professional services is expected to support continued income growth, though likely at a gradual pace.
What is the current average 30-year mortgage interest rate, and how would a 1% increase impact monthly payments?
The current average 30-year fixed mortgage rate is 6.67% as of August 2025.
For a $700,000 home loan with a 30-year amortization, the monthly payment (principal and interest only) would be approximately $4,509 at the current 6.67% rate.
| Interest Rate | Monthly Payment (P&I) | Monthly Difference |
|---|---|---|
| 6.67% (current) | $4,509 | Base payment |
| 7.67% (+1%) | $4,965 | +$456 |
| 5.67% (-1%) | $4,075 | -$434 |
| 8.67% (+2%) | $5,449 | +$940 |
| 4.67% (-2%) | $3,664 | -$845 |
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How much new construction is expected to be completed in Santa Ana by the end of 2026?
The Village Santa Ana Specific Plan will begin construction in January 2026 and aims to deliver up to 1,583 residential units.
While not all units will be completed by the end of 2026, the first phase of approximately 300-500 units is expected to be delivered by late 2026 or early 2027. Additional smaller projects currently in the pipeline could contribute another 200-300 units.
The city has already demonstrated its capacity to exceed housing development goals, having issued permits for 133% of its required allocation for the 2021-2029 period. This aggressive development pace is expected to continue through 2026.
Construction timelines may be affected by factors including permit processing, labor availability, and material costs, but the city's pro-development stance suggests projects will proceed as scheduled.
What are the current rental prices for a two-bedroom apartment in Santa Ana, and how much have they increased annually since 2020?
Current rental prices for a two-bedroom apartment in Santa Ana range from $2,820 to $2,937 as of 2025.
In 2020, similar apartments rented for approximately $2,300 to $2,450, indicating substantial increases over the five-year period. The annual increase has averaged between 4-5%, with some years showing higher growth.
| Year | Average 2BR Rent | Annual Increase |
|---|---|---|
| 2020 | $2,300-$2,450 | Base year |
| 2021 | $2,400-$2,550 | ~4% |
| 2022 | $2,550-$2,700 | ~6% |
| 2023 | $2,650-$2,800 | ~4% |
| 2024 | $2,750-$2,900 | ~3.5% |
| 2025 | $2,820-$2,937 | ~3% |
What percentage of Santa Ana residents are homeowners versus renters, and how has that ratio shifted?
Approximately 43% of Santa Ana residents are homeowners while 57% are renters as of recent estimates.
This represents a shift toward renting over the past decade, as rising home prices have outpaced income growth. The homeownership rate has declined from approximately 48-50% in 2015 to the current 43%.
Several factors contribute to this trend: rapid price appreciation making homeownership less accessible, a growing population of younger residents who rent, and increased investor activity in the single-family rental market.
The rental market dominance reflects broader affordability challenges in Orange County, where median home prices require household incomes significantly above the area median to qualify for purchase.
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What is the historical correlation between employment growth in Orange County and housing prices in Santa Ana?
Employment growth in Orange County shows a strong historical correlation with housing price appreciation in Santa Ana.
For 2026, Orange County is projected to reach 1,853,600 total employment positions, representing average yearly growth of 1.2%. Key sectors driving job creation include technology, healthcare, aerospace, and professional services.
1. **Technology Sector Growth**: Continued expansion of tech companies creates high-paying jobs that drive housing demand2. **Healthcare Employment**: Orange County's aging population supports healthcare job growth3. **Professional Services**: Legal, financial, and consulting services maintain steady growth4. **Transportation/Logistics**: Port proximity and distribution centers create blue-collar employment5. **Tourism/Hospitality**: Seasonal employment that supports rental demandEach 1% increase in county employment historically correlates with 2-3% increases in Santa Ana housing demand, as workers seek affordable alternatives to more expensive coastal cities.
The projected job growth supports continued housing price appreciation, though at a more moderate pace than the dramatic increases of 2020-2023.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Santa Ana's property market in 2026 will likely see continued price appreciation driven by steady employment growth and limited housing supply, though the pace will moderate from recent years.
New construction projects and stabilizing mortgage rates around 6.67% will create a more balanced market environment compared to the extreme seller's market of 2021-2023.