When it comes to million-dollar homes, many people immediately think of luxury neighborhoods in Beverly Hills, San Marino, Newport Beach, and Palos Verdes. However, as housing prices surge in California, areas that were once considered affordable are now seeing median home values climb to the million-dollar mark.
Analysts from Zillow have highlighted that communities like Placentia, Orange, and Tustin in Orange County, as well as Bonita in San Diego County and San Gabriel in Los Angeles County, are the latest areas joining the ranks of million-dollar neighborhoods. Tustin and Bonita have experienced the highest increases, with annual growth nearing 12%.
For Tor Black, a 55-year-old real estate agent who has lived in Tustin for five years, the rising prices hit close to home. He and his wife found their forever home in Tustin Meadows, Orange County’s first planned community, purchasing their residence for $800,000 in 2022. Today, it is valued at approximately $1.3 million—a staggering 60% increase.
“There’s not much land left in Tustin,” Black noted, explaining that the current buyers are often looking for older homes to remodel, which drives up real estate prices. He also mentioned that many properties have been passed down through generations, making the search for homes increasingly competitive.
Having lived in Anaheim Hills, Black was drawn to Tustin for its unique community feel. “It has a sense of hometown that you just can’t find in other parts of Orange County,” he stated. As a child, he dreamed of being a millionaire, a goal he once thought was far off. “But now, I can at least proudly say my home is worth over a million.”
With the supply and demand imbalance in Southern California, Black believes that prices will continue to rise. Currently, over 210 cities in California have a median home price exceeding $1 million, accounting for nearly 40% of the 550 million-dollar communities in the U.S.—more than the combined total of the five states with the next highest numbers.
This year alone, California added 12 new cities to the million-dollar list, including Tustin, Bonita, Brea, San Gabriel, Cerritos, Orange, San Luis Obispo, Placentia, Cambria, Thousand Oaks, Pala, Pleasant Hill, Arroyo Grande, Bonsall, and Cypress.
While 15 cities were actually added this year, three of these—Tomales, Carnelian Bay, and Vernalis—were previously on the list but saw price declines.
Among the existing million-dollar cities in Southern California, five have seen substantial price increases ranging from 12% to 17%, these include La Cañada Flintridge, Irvine, Laguna Niguel, Laguna Hills, and Poway.
Overall, California’s median home price last year was $789,000, marking a 3.1% annual increase, and up 33.5% over the past five years. Bonita, with a population of 13,000, has seen a remarkable 65% price increase in the last five years, attributed to strict new home construction limits and rising demand.
Wendy Wilson, a 57-year-old employee at the Bonita Historical Society living in North Park, shared her perspective on the community. “Residents love the countryside vibe here—people even ride horses and some have stables.” She noted that Bonita has many century-old homes, and the restrictions on new builds help maintain its character while being conveniently close to San Diego and Tijuana, Mexico.
Back in Tustin, located between Santa Ana and Irvine, Black believes the area has its own distinct charm. However, similar to much of California, the soaring housing prices present a significant challenge. With a median household income just above $100,000, home prices are more than ten times the average income, a situation echoed in Bonita as well. In contrast, national home prices typically range from five to six times household income; in 2019, this was only around four times.
Black argues that Tustin’s greatest strength is its diversity—not just in ethnicity and religion, but in age and education levels. “It’s more livable than certain places like Bill Bay and safer than Santa Ana. The local police have a zero-tolerance policy for crime, which has earned them the nickname ‘bustin’.” He acknowledges one downside: traffic, a common issue throughout Southern California. Public transportation is available, but he notes that people prefer driving themselves.
Despite the traffic challenges, Black sees limited housing availability and a strong job market pushing surrounding property values up. Yet, he still insists, “People often think too highly of Southern California.”
