Newport Beach , CA

Monthly Housing Development Update | October 2021

General statistics, market trends and outlook for housing development in Newport Beach, CA

City Housing Update for October 2021

Current Trends:

During this past month of September, the median rental price for a single family home in Newport Beach was $5,245 and median sale price for a single family home in the city was $1,741,900. There were approximately 458 homes listed for sale in the city at the end of September, compared with 458 in August. During the last month, homes sold within days on the market and received offers per sale on average.

City Housing Supply:

As of the end of 2017, the total count of existing housing units in the city was 44,670. Single family housing units make up the majority 60.78% of Newport Beach's housing units, 27,151 units total. Multifamily units make up 36 percent, or approximately 16,399. As of last year, the average housing density (people per household) was 2.24, compared with the state average of 2.97. At the end of the period, about 5,921 of housing units in the city were unoccupied, suggesting a vacancy rate of 0 percent.

Regulations & Outlook:

The City has not yet finalized updates to it's residential zoning code that fully comply with State Laws SB 1069 and AB 2299 which allow for Accessory Dwelling Units (ADUs) to be developed on most single family lots. More commonly referred to as “Granny Flats” and “In-Law Units”, in Newport Beach as many as 16,019 homes may now be eligible to add some form of second dwelling unit. These laws are intended by The State to boost opportunities for housing production in cities in an effort to address the growing housing deficits local communities face accross The State. Typically secondary units are constructed by homeowners in backyards, converted garages and basements of single family residences. These new regulations could now allow individual homeowners to play a significant role to increase housing production in Newport Beach over the coming years. Consider for example, if just one percent of eligible homeowners in Newport Beach built an ADU each year, it would contribute an additional 800 units to the city's housing stock over the next five years and create hundreds of new local construction jobs.

Local News & Policy:

At this time, statewide standards will superseed any local residential zoning requirements for ADUs that are non-compliant with the state's minimum set of requirements. The current development standards for ADUs in Newport Beach, or any other CA city, can be found at the city zoning page link and search below. Recently More information on the latest local policies and requirements for ADUs will be available as they are passed. Check back each month for the latest changes in Newport Beach.

Get Involved:

For homeowners and local developers who are interested in getting involved in the ADU movement locally in Newport Beach, use Housable to get insights about the ADU housing development potential of specific properties. Housable provides zoning, permitting, estimation and design tools, many of them free of charge, to help homeowners at any step plan, permit and build their ADU projects. Use property design and calculation tools any time, get low cost insights about the ADU potetnial of your property and connect with local professionals who can help with the process when you're ready to get started. Stay up to date with the latest local trends in housing production and join the ADU movement to create more housing in Newport Beach, one garage, basement, or backyard at a time.

Exerpts From City Housing Reports

Year No. of Residential Units Converted 1995 37 1996 28 1997 20 1998 30 1999 30 2000 22 2001 43 2002 19 2003 23 2004 43 2005 51 2006 42 2007 6 2008 6 2009 5 2010 3 2011 0 2012 3 Total 411

Growing market demand for housing in Newport Beach and little remaining vacant land in the City has had a strong impact on financial aspects of residential development in the City. The greatest impact of this market demand on cost of new housing is seen in the price of residential land in the City. According to the 2008 Inclusionary Housing In-Lieu Fee Study, land entitled for multi-family residential housing in the City would cost approximately $3.5 million per acre. It is estimated that such land value would now cost over $3.5 million per acre.10 Density increases often are used to offset high construction and land costs. Density increases may decrease land costs on a per-unit basis, but sales prices of units in Newport Beach indicate density increases do not necessarily bring the cost of housing to consumers to a level that is affordable to lower- or even moderate-income households. Assuming that multi-family housing would be built at 20 units an acre, the land cost would be approximately $178,000 per unit.

- 5-126 Newport Beach General Plan Based on past production of granny units, and future promotion efforts required by Housing Program 5.1.3, it is the City's goal to approve approximately 20 new senior accessory dwelling units during the planning period. Given the maximum size of the units, occupancy restrictions that these units be occupied by persons of age 55 years or older, and discussions with current owners of these properties, these units are assumed to be occupied by a combination of moderate- and low-income households. Therefore, it is presumed that 50 percent of new granny units would be rented to low-income senior households.

Current Market Stats October 2021

Median Sales Price $1,741,900.00

Median Rental Price $5,244.00 Based on 840 sqft unit

Total Homes on Market 458

City Housing Stock 2017

Total Housing Units 44670

Single-Family Units 27151

Other Type Units 1120

Unit Vacancy Rate 0.1325

Annual Units Produced (2017) 544

Go to Newport Beach ADU Zoning Page

General City Info Newport Beach, CA

City Population 85,186

City Area 23.8 sq. mi.

We have our final inspection TODAY and do expect it will go well. We’ve been lucky to have a nice inspector. I’ll send you more pics this weekend!

Fiona K. in Bell Canyon, CA

The plans were approved and I received the permit today. Thank you for all your help with the process!

Jannie B. in Los Angeles, CA

My experience with Housable was exceptional. The team was extremely helpful and responsive. I am very satisfied and happy to have used these services. As a homeowner I do not know the construction lingo or process but the Housable team very kind and helpful and patient with me. My expectations were exceeded. Thank you for everything.

Monica H. in Oakland, CA

City & State Housing News

Newport Beach, CA Newport Beach gives first OK to ‘granny flats’ in some neighborhoods The Orange County Register 26/07/2017

Newport Beach, CA Newport moves ahead with sewer rate increase Los Angeles Times 27/07/2017

Newport Beach, CA Some marina rents might double in Newport under new rate plan Los Angeles Times 21/07/2017

Go to Newport Beach ADU Zoning Page

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