Top Southern California Cities for Projected Home Price Growth (2025–2028)

If you’re looking to invest in real estate or buy a home in Southern California, understanding where home prices are expected to grow is crucial. The Southern California housing market is diverse, with coastal luxury markets, suburban communities, and affordable inland cities all experiencing different trends. In this blog, we break down the top SoCal cities projected for home price growth between 2025 and 2028-helping you make informed decisions.

Why Focus on Southern California?

Southern California is one of the most dynamic real estate markets in the U.S., driven by its desirable climate, strong economy, and diverse communities. However, soaring home prices in coastal areas have pushed many buyers to look inland, where affordability and growth potential are higher.

Top Cities with Strong Projected Home Price Growth

1. Inland Empire: Riverside & San Bernardino

The Inland Empire remains the most promising region for home price growth through 2028. With median home prices around $714,000, Riverside and San Bernardino counties offer more affordable options compared to coastal cities.

• Why it’s growing:

  • Increased new housing developments

  • More available land for construction

  • Strong demand from buyers priced out of coastal markets

2. Orange County Suburbs: Laguna Niguel, Villa Park, and Coto de Caza

Orange County continues to be a hotspot for upscale suburban living. Cities like Laguna Niguel and Villa Park have seen double-digit percentage increases in home prices over the past year, signaling ongoing demand.

• Key stats:

  • Laguna Niguel home prices up 9% year-over-year

  • Villa Park prices increased by 8.2%

  • Median home prices exceed $1.4 million in many areas

3. Los Angeles Metro Area: Lake Forest & Fountain Valley

The greater Los Angeles area remains competitive. Cities such as Lake Forest and Fountain Valley have experienced strong price growth, fueled by limited inventory and steady demand.

• Market highlights:

  • Lake Forest home values increased by nearly 9% in one year

  • Fountain Valley saw a 9.2% increase

  • Median home prices hover around $1.2 million

4. San Diego County: Rancho Santa Fe

Rancho Santa Fe is an affluent community with steady home price appreciation. With median home prices above $4 million, this area is attractive to luxury buyers seeking stability and exclusivity.

• Growth factors:

  • Strong local economy

  • Limited supply of luxury homes

  • 4.3% price growth over the past year

Market Trends to Watch (2025–2028)

• Moderate but steady growth: Home price appreciation is expected to slow compared to previous years, with annual growth rates around 2-3% in many areas.

• Shift toward affordability: Buyers are increasingly attracted to inland regions where prices are lower and new construction is more feasible.

• Mortgage rates impact: Higher mortgage rates (currently in the high 6% range) are cooling demand slightly but not stopping growth.

• Inventory dynamics: Limited housing inventory in coastal and suburban markets will continue to support price increases.

Why Invest in These Cities?

• Inland Empire: Offers the best value and growth potential for first-time buyers and investors.

• Orange County & LA Suburbs: Provide a balance of lifestyle, amenities, and appreciation potential.

• San Diego Luxury Markets: Ideal for buyers seeking long-term stability in exclusive neighborhoods.

Final Thoughts

Southern California’s real estate market is evolving. While coastal cities remain expensive and slow-growing, inland areas like Riverside and San Bernardino are poised for solid appreciation. Meanwhile, select Orange County and San Diego suburbs continue to offer strong returns for buyers willing to invest in these communities.

If you’re planning to buy or invest in SoCal real estate between 2025 and 2028, focusing on these key cities can help you capitalize on projected home price growth and secure your financial future.

Frequently Asked Questions (FAQs)

Q: Which SoCal city has the highest projected home price growth?
A: Inland Empire cities like Riverside and San Bernardino are expected to see the highest percentage growth due to affordability and new development.

Q: Are coastal cities still a good investment?
A: Yes, but growth will be slower. Coastal cities offer stability and lifestyle benefits but come with higher prices and limited inventory.

Q: How do mortgage rates affect home price growth?
A: Higher mortgage rates can reduce buyer demand, slowing price growth, but limited inventory keeps prices from dropping significantly.

If you want personalized advice on buying or investing in Southern California real estate, feel free to reach out or subscribe to our newsletter for the latest market updates!

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