Aliso Viejo, a picturesque suburban city nestled in Orange County, California, is known for its family-friendly atmosphere, scenic parks, and proximity to both urban amenities and natural beauty. However, like many cities across California, Aliso Viejo faces a pressing challenge: ensuring affordable housing for its residents. As housing costs soar in Southern California, the need for accessible, affordable living options has never been more critical. In recent years, Aliso Viejo has made significant strides in addressing this issue, balancing growth with inclusivity to create a community where people of all income levels can thrive. This blog post explores the city’s affordable housing efforts, recent developments, challenges, and what the future holds for this vibrant locale.
The Affordable Housing Crisis in Context
California’s housing crisis is no secret. With median home prices in Orange County hovering around $1 million and rents often exceeding $2,500 per month for modest apartments, many residents—especially low- and moderate-income families, seniors, and essential workers—struggle to find affordable places to live. Aliso Viejo, while more affordable than some of its coastal neighbors, is not immune to these pressures. The city’s median home sales price reached $913,750 in February 2025, reflecting a 4.8% increase from the previous year, according to real estate data. For renters, the situation is equally daunting, with demand outpacing supply and vacancy rates remaining low.
The state of California has responded to this crisis with mandates like the Regional Housing Needs Assessment (RHNA), which requires cities to plan for a specific number of housing units across various income levels. For Aliso Viejo, the goal is to facilitate the construction of 1,195 units by 2029, including a significant portion designated as affordable. This mandate has spurred local leaders, developers, and community stakeholders to collaborate on innovative solutions, making affordable housing a top priority.
A Legacy of Commitment: Existing Affordable Housing in Aliso Viejo
Aliso Viejo has a history of supporting affordable housing initiatives, particularly for seniors and families. One standout example is Liberty at Aliso, a senior living community that opened in 2019. Located at 100 Freedom Lane, this 200-unit complex offers one- and two-bedroom apartments for residents aged 55 and older with household incomes between 50% and 60% of the area median income (AMI). Rents start at $990 for a one-bedroom and $1,175 for a two-bedroom—roughly half the market rate for similar units in the area. The community boasts amenities like a pool, fitness center, and clubroom, proving that affordability doesn’t mean sacrificing quality of life.
Liberty at Aliso was fully leased upon opening, with a waiting list that underscored the overwhelming demand for such options. Its sister property, Vintage at Aliso, opened in 2017 across the street and offers similar affordable housing for seniors. Together, these developments have added nearly 400 affordable units to the city, catering to a demographic often priced out of Orange County’s housing market.
For families, projects like Wood Canyon Villas and Woodpark Apartments provide additional options. Wood Canyon Villas, with 230 total units, includes 46 deed-restricted subsidized apartments, while Woodpark Apartments offers 128 subsidized units among its 128 total apartments. These complexes serve low-income singles and families, offering one-, two-, and three-bedroom layouts. However, waiting lists for these properties are often long, and availability remains a challenge—a clear sign that more needs to be done.
Recent Developments: Avalon Aliso Viejo and Beyond
One of the most exciting recent developments in Aliso Viejo’s affordable housing landscape is the proposed Avalon Aliso Viejo project. Announced by AvalonBay Communities, this 4.4-acre mixed-use development at The Commons at Aliso Viejo Town Center aims to bring 362 apartments to the city, including 34 units (10%) designated as affordable for moderate-, low-, and very-low-income households. With units ranging from studios to three-bedrooms, the project seeks to address diverse housing needs while integrating retail space and pedestrian-friendly pathways.
Slated to break ground in 2025 and complete construction by late 2027, Avalon Aliso Viejo represents a significant step toward meeting RHNA goals. Its location within an existing shopping center leverages underutilized parking areas, enhancing the town center’s vibrancy without sprawling into undeveloped land. The project’s design, led by TCA Architects, draws inspiration from the surrounding Aliso and Wood Canyons, blending modern aesthetics with the natural environment. This development is poised to be the first major residential project in Aliso Viejo in nearly a decade, signaling a renewed focus on housing growth.
Beyond Avalon, the city has explored creative rezoning efforts to unlock affordable housing potential. In 2014, after years of negotiation with state housing authorities and property owners, Aliso Viejo’s City Council approved a housing element that rezoned a 4-acre U.S. Postal Service site at 4 Liberty for very high-density residential use. This move, supported by an agreement with Shea Properties to lift deed restrictions, paved the way for future affordable projects. While progress on this specific site has been slow, it reflects the city’s willingness to adapt zoning policies to meet housing demands.
Funding and Support: Grants and Partnerships
Aliso Viejo’s efforts have been bolstered by state funding and partnerships. In 2020, the city received a $160,000 grant from the California Department of Housing and Community Development to streamline housing approvals and accelerate production. This funding, part of a broader initiative championed by Senator Patricia Bates, has supported planning efforts across South Orange County. While not enough to build units directly, such grants enable cities to lay the groundwork for development, from updating zoning codes to conducting feasibility studies.
The city also collaborates with the Orange County Housing Authority (OCHA), which administers the Section 8 Housing Choice Voucher program. This federal initiative provides rental subsidies to very-low-income households and seniors, bridging the gap between income and rising rents. In Aliso Viejo, the average Section 8 voucher contributes $1,400 per month toward rent, with tenants paying around $600 out of pocket. For a two-bedroom apartment, the maximum voucher amount ranges between $2,505 and $3,061—still a stretch for many, but a lifeline nonetheless.
Challenges and Community Perspectives
Despite these advancements, Aliso Viejo faces hurdles in expanding affordable housing. Community resistance has historically been a barrier, as seen in past debates over rezoning proposals. In 2014, residents near a proposed high-density site at 4 Orion protested, fearing traffic congestion and changes to neighborhood character. Similar sentiments echoed in nearby Mission Viejo in 2004, where affordable housing plans were met with concerns about crime and property values—fears that data from existing complexes have largely debunked.
Cost is another challenge. Developing affordable housing in a high-cost region like Orange County requires significant subsidies, tax credits, or public-private partnerships. While projects like Avalon Aliso Viejo incorporate affordable units, the majority remain market-rate, reflecting the economic realities of construction. Balancing profitability for developers with affordability for residents remains a delicate dance.
Moreover, the pace of development struggles to keep up with demand. With only 530 rent-subsidized apartments currently in Aliso Viejo (none of which are income-based with direct rental assistance), and long waiting lists for subsidized units, many residents turn to the private market or leave the area altogether. The city’s low rental vacancy rate of 5% exacerbates this scarcity, driving up rents as competition intensifies.
The Road Ahead: A Vision for Inclusivity
Looking forward, Aliso Viejo’s affordable housing efforts hinge on sustained momentum. The Avalon project, if completed on schedule, will add a meaningful number of units, but it’s just one piece of the puzzle. Meeting the RHNA target of 1,195 units by 2029 will require additional projects, innovative financing, and community buy-in. City leaders are exploring options like inclusionary zoning—requiring developers to set aside a percentage of units as affordable—and expanding partnerships with nonprofits like the Foundation for Affordable Housing, which co-developed Liberty at Aliso.
There’s also potential in adaptive reuse, such as converting underused commercial spaces into residential units. As remote work reshapes office demand, Aliso Viejo could repurpose vacant business parks into mixed-income housing, preserving open space while addressing needs. State programs, like those outlined by the California Department of Housing and Community Development, could provide further funding to make this vision a reality.
Community engagement will be key. Educating residents about the benefits of affordable housing—economic diversity, support for essential workers, and stronger local businesses—can shift perceptions and reduce opposition. Success stories like Liberty at Aliso, where seniors have found not just homes but a sense of belonging, offer a compelling narrative to build on.
Conclusion
Aliso Viejo stands at a crossroads. Its affordable housing efforts, from established complexes like Liberty at Aliso to ambitious proposals like Avalon Aliso Viejo, reflect a commitment to inclusivity amid a challenging housing landscape. While obstacles remain—funding, community resistance, and the sheer scale of need—the city’s proactive steps signal hope. By blending policy innovation, strategic partnerships, and a focus on quality of life, Aliso Viejo is carving a path toward a more equitable future. As these initiatives unfold, they promise to shape not just the city’s skyline, but the lives of its residents for generations to come.
