San Juan Capistrano, a charming city nestled in South Orange County, California, is known for its rich history, picturesque mission, and small-town vibe. But beneath its quaint exterior lies a pressing modern challenge: the need for affordable housing. As housing costs soar across California, this historic community is stepping up to address the issue with innovative projects, public-private partnerships, and a commitment to balancing growth with its unique character. In this blog post, we’ll dive into the latest affordable housing efforts in San Juan Capistrano, explore the challenges and successes, and look at what the future holds for residents seeking attainable homes.
The Housing Crisis Hits Home
California’s housing crisis is no secret. Skyrocketing home prices and rents have made it increasingly difficult for working families, seniors, and young professionals to live in the communities where they work or grew up. San Juan Capistrano is no exception. With a median home price hovering around $1 million and a cost per square foot of approximately $614 (as of early 2024 data), the city offers a blend of upscale living and spacious homes—but these come at a premium that many residents can’t afford.
For a family of four in Orange County, the median income is $129,000, according to the state’s Department of Housing and Community Development. To qualify as “low-income” and be eligible for affordable housing programs, that family’s annual income must fall below $126,250. That’s a tight margin in a region where the cost of living is among the highest in the nation. Add in the fact that San Juan Capistrano’s homes average around 2,120 square feet—larger than many in Orange County—and the challenge of affordability becomes even clearer. Bigger homes often mean higher prices, pushing the dream of homeownership or even renting out of reach for many.
But San Juan Capistrano isn’t sitting idly by. The city has been proactive in tackling this issue, leveraging state mandates, local leadership, and community input to create housing solutions that serve its diverse population.
A Groundbreaking Moment: Paseo Adelanto Project
One of the most exciting developments in San Juan Capistrano’s affordable housing journey is the Paseo Adelanto project. In March 2023, local officials gathered near the old City Hall site to celebrate the groundbreaking of a 40+ unit affordable housing complex spearheaded by Jamboree Housing, a nonprofit developer known for its work across California. This project, located just steps from the city’s historic core, is designed to serve military veterans and low-income families—a testament to the city’s commitment to its most vulnerable residents.
Mayor Howard Hart called it an “incredible project” that not only addresses homelessness but also sets a standard for innovative housing solutions. “In many ways, this unique public-private partnership is the first of its kind—certainly the first in Orange County,” Hart said at the groundbreaking ceremony. The collaboration brought together Jamboree Housing, the City of San Juan Capistrano, Orange County officials, and private funders like Bank of America, with additional support from a $1 million grant from the California Energy Commission Electric Program Investment Change Program.
The Paseo Adelanto project is more than just a housing complex—it’s a symbol of what’s possible when a community comes together. By targeting veterans and low-income families, it addresses specific needs while keeping the city’s small-town feel intact. Construction is ongoing, with completion expected to bring much-needed relief to the housing crunch.
Don Juan Avenue: A Shift Toward Senior Housing
Another significant effort unfolded in late 2024 when the San Juan Capistrano City Council unanimously approved the purchase of a 1.8-acre vacant lot on Don Juan Avenue for $2.35 million. Initially, the property owner, Affordable Housing Land Consultants LLC, proposed a six-story, 107-unit family-oriented complex with just 14 parking spots—a plan that sparked concern among residents and councilmembers alike. Critics argued that the scale didn’t fit the city’s character and that the lack of parking would exacerbate congestion in an already busy area near Camino Capistrano.
Rather than let the project move forward under streamlined state laws that limit local control, the city stepped in. Using funds already earmarked for affordable housing in its budget, San Juan Capistrano bought the land to redirect its future. The new vision? Affordable housing tailored for seniors. Councilmembers see this as a win-win: seniors typically drive less, reducing traffic impacts, and the city retains greater say over the design to ensure it aligns with the community’s aesthetic and needs.
Assistant City Manager Matisse Reischl emphasized that this purchase gives the city “substantially more control” over the outcome. As of March 2025, the city is in a due diligence period, conducting site assessments before finalizing the deal. If all goes as planned, this lot could soon become a model for senior housing that balances affordability with the city’s historic charm.
State Mandates and Local Pushback
San Juan Capistrano’s efforts don’t exist in a vacuum—they’re shaped by California’s aggressive push to increase housing stock. State laws like the Density Bonus Law and the Complete Communities initiative give developers tools to bypass local zoning restrictions if they include affordable units. For example, a five-story development approved in early 2025 in the San Juan Plaza (between Trader Joe’s and Vons) sparked debate. While it met state affordable housing requirements, some officials and residents worried it clashed with the city’s low-rise, small-town identity.
Under these laws, developers can increase building height or skip parking requirements if projects are near transit hubs like the San Juan Capistrano train station. This has been a double-edged sword: it accelerates affordable housing construction but limits the city’s ability to tailor projects to local preferences. Councilmembers have voiced frustration that their hands are tied, yet they’ve also embraced opportunities to work within these constraints—like the Don Juan Avenue purchase—to retain influence where possible.
Community Voices: Balancing Growth and Identity
Affordable housing efforts in San Juan Capistrano haven’t been without controversy. Residents have turned out in droves at planning commission and city council meetings to voice concerns about density, traffic, and the erosion of the city’s “quaint” feel. “San Juan was a nice, quaint town way back when,” one resident lamented during a January 2025 council meeting, echoing a sentiment shared by many.
Yet there’s also recognition of the need. With an average resident age of 42, San Juan Capistrano is a community of families, workers, and retirees—all of whom deserve housing options. The city’s leadership has worked to strike a balance, prioritizing projects like Paseo Adelanto and Don Juan Avenue that address specific demographics (veterans, seniors) while minimizing disruption.
Looking Ahead: What’s Next for San Juan Capistrano?
As of March 25, 2025, San Juan Capistrano’s affordable housing efforts are gaining momentum. The Paseo Adelanto project is progressing, the Don Juan Avenue purchase is poised to redefine senior living, and the city continues to explore new opportunities. Funding remains a key piece of the puzzle—local budget allocations, state grants, and private partnerships will be critical to sustaining this work.
The city’s broader housing market trends offer context for these efforts. While single-family homes dominate with higher price tags, townhouses and condos provide more affordable entry points. The relatively reasonable $614 per square foot (compared to other Orange County cities) suggests there’s room for creative solutions that maximize value without sacrificing quality.
San Juan Capistrano is also part of a larger regional conversation. Orange County’s Housing Finance Trust and initiatives like the Connecting Housing to Infrastructure Program (seen in nearby San Juan County, WA) highlight the power of collaboration. Could San Juan Capistrano inspire other South County cities to follow its lead with public-private partnerships or targeted housing for specific groups?
A Model for the Future
San Juan Capistrano’s affordable housing efforts reflect a community wrestling with growth while holding onto its roots. From the groundbreaking at Paseo Adelanto to the strategic land purchase on Don Juan Avenue, the city is carving out a path that prioritizes affordability, inclusivity, and local control. It’s not an easy road—state mandates, resident concerns, and funding hurdles loom large—but the progress is undeniable.
For residents, these projects mean more than just new buildings. They’re a chance to stay in the community they love, whether they’re veterans starting over, seniors downsizing, or families building a future. For San Juan Capistrano, they’re a step toward a more equitable, sustainable tomorrow—one where history and opportunity coexist. As Mayor Hart put it, “San Juan Capistrano’s once again leading the way.” And with each new effort, that leadership shines brighter.
