The Housing Boom in Laguna Hills: Why Now?
Laguna Hills has always been a desirable place to live, thanks to its Mediterranean climate, excellent schools, and easy access to major highways like the I-5 and Route 133. However, like much of California, the city has faced challenges in meeting housing demands, particularly as the state grapples with a broader housing shortage. The Regional Housing Needs Assessment (RHNA) has tasked Laguna Hills with planning for 1,985 new housing units between 2021 and 2029, a goal that has spurred significant action from local government and private developers alike.
In response, the city updated its Housing Element in 2024, laying out a blueprint to accommodate this growth while preserving the community’s character. This plan includes rezoning efforts, the establishment of new overlay zones, and incentives for mixed-use developments. As of March 27, 2025, several projects are either underway or in the final stages of approval, promising to reshape the residential offerings in Laguna Hills for years to come.
Spotlight on Major Projects
1. The Village at Laguna Hills: A Mixed-Use Marvel
One of the most ambitious projects in Laguna Hills is the Village at Laguna Hills, a redevelopment of the former Laguna Hills Mall site. Approved in 2022 after years of planning and debate, this 68-acre mixed-use development is set to reach significant milestones in 2025. The project will feature 1,500 apartment units alongside retail spaces, office areas, a hotel, and a community park, creating a vibrant “live-work-play” environment.
As of early 2025, construction is well underway, with the first residential units expected to be move-in ready by late summer. The Village aims to address a substantial portion of the city’s RHNA allocation—potentially up to 46% or more, depending on the affordability of the units. While the project has faced criticism for not including enough very low-income housing (a gap of 568 units remains in the city’s RHNA goals), supporters highlight its economic benefits, such as new revenue from retail and hotel operations that will bolster city services.
The Village at Laguna Hills stands out for its modern design and focus on walkability. With paseos, plazas, and green spaces integrated into the layout, it promises to bring a downtown-like feel to a city traditionally defined by suburban sprawl. For residents, this could mean more local amenities within walking distance—a significant shift for a community historically reliant on car travel.
2. Nellie Gail Ranch: A Luxury New Build
For those seeking high-end living, a revolutionary new construction project in the prestigious Nellie Gail Ranch community is slated for completion in the summer of 2025. This net-zero, non-combustible home, designed by luxury developer Sherif Shams, represents the cutting edge of sustainable architecture. Featuring “wood-free” construction technology, the residence includes a 500-square-foot ADU (Accessory Dwelling Unit) casita, offering flexibility for multi-generational living or rental income.
This project caters to Laguna Hills’ affluent demographic while aligning with California’s push for eco-friendly building practices. With home sizes in the area ranging from 763 to 5,800 square feet and prices starting at $480,000 and climbing to over $5 million, this development underscores the diversity of housing options emerging in 2025. While it won’t significantly dent the RHNA numbers due to its luxury focus, it sets a precedent for innovative design that could influence future projects.
3. Crestline Community Townhomes
In the Crestline neighborhood, a more modestly priced option is taking shape with a collection of newly updated townhomes. These 2-bedroom, 2.5-bath units feature open floor plans, high ceilings, and modern finishes like laminate wood-look flooring and stone fireplaces. Already move-in ready as of early 2025, this development targets young families and professionals looking for a foothold in Laguna Hills’ competitive housing market.
With no HOA dues in some nearby areas like Shadow Run, these types of projects offer a balance of affordability and quality. They also reflect the city’s efforts to diversify housing stock beyond single-family homes, catering to a broader range of income levels and lifestyles.
Broader Trends Shaping 2025 Housing
Beyond these specific projects, several trends are driving Laguna Hills’ housing evolution in 2025:
Sustainability and Innovation
California’s stringent environmental regulations are pushing developers toward greener solutions. The Nellie Gail Ranch project’s net-zero design is just one example, but even larger developments like the Village at Laguna Hills incorporate energy-efficient features and open spaces to reduce urban heat and improve quality of life. Expect to see more solar panels, drought-resistant landscaping, and smart home technologies in new builds throughout the year.
Mixed-Use Developments
The success of the Village at Laguna Hills could pave the way for more mixed-use projects. By blending residential, commercial, and recreational spaces, these developments aim to reduce reliance on cars, foster community interaction, and boost local economies. The city’s updated zoning standards, adopted in 2024, make it easier for such projects to gain approval, suggesting that 2025 could be a tipping point for this model in Laguna Hills.
Affordability Challenges
While new construction is booming, affordability remains a sticking point. The RHNA requires Laguna Hills to plan for units across all income levels, yet many 2025 projects lean toward moderate- or market-rate housing. The Village at Laguna Hills, for instance, includes smaller studios and one-bedroom units that may fall into moderate-income categories, but the lack of very low-income options has drawn scrutiny. Addressing this gap will be a key challenge for the city moving forward.
What This Means for Residents
For current and prospective residents, the new housing projects in Laguna Hills for 2025 offer both opportunities and considerations:
- More Options: From luxury homes to mid-range townhomes and apartments, the variety of new builds means there’s something for nearly every budget and preference.
- Community Growth: Developments like the Village will bring new amenities, potentially reducing the need to travel to nearby cities like Irvine or Newport Beach for shopping or entertainment.
- Traffic and Infrastructure: With growth comes pressure on roads and utilities. The city is working to mitigate this—e.g., negotiating hotel completion before all residential units at the Village—but residents should expect some adjustments as these projects scale up.
- Economic Boost: New retail and office spaces could create jobs and increase tax revenue, supporting schools, parks, and other public services.
Looking Ahead: The Future of Laguna Hills
As of March 27, 2025, Laguna Hills is at a crossroads. The housing projects slated for completion or significant progress this year reflect a city adapting to modern needs while striving to maintain its suburban charm. The Village at Laguna Hills, in particular, could redefine the city’s identity, bringing a touch of urban sophistication to its rolling hills. Meanwhile, smaller developments like those in Crestline and Nellie Gail Ranch show that Laguna Hills remains committed to serving diverse residents, from first-time buyers to luxury seekers.
However, the journey isn’t without hurdles. Balancing growth with affordability, infrastructure, and environmental sustainability will require careful planning and community input. The city’s Housing Element provides a roadmap, but its success depends on execution—and 2025 will be a critical year for proving that vision.
For those considering a move to Laguna Hills or simply watching its evolution, this year promises to be a fascinating chapter. Whether you’re drawn by the promise of a modern apartment in the Village, a sustainable luxury home in Nellie Gail, or a cozy townhome in Crestline, the new housing projects of 2025 are set to make Laguna Hills an even more vibrant place to call home. Keep an eye on this space—because in Laguna Hills, the future is being built right now.
