The real estate market has undergone seismic shifts in the wake of the COVID-19 pandemic, with local markets across the United States adapting to new economic realities, evolving buyer preferences, and changing lifestyle demands. Garden Grove, a vibrant city in Orange County, California, is no exception. Known for its diverse community, proximity to major urban centers like Los Angeles and Anaheim, and a mix of suburban charm and urban accessibility, Garden Grove’s real estate market has seen notable changes since the pandemic began. As of March 16, 2025, these shifts reflect broader national trends while showcasing unique local dynamics. This blog post explores how the post-pandemic landscape has reshaped real estate demand in Garden Grove, delving into key factors such as remote work, housing preferences, market competitiveness, and economic influences.
The Pre-Pandemic Baseline
Before diving into the post-pandemic shifts, it’s worth understanding Garden Grove’s real estate market prior to 2020. Historically, Garden Grove has been a desirable location for families and professionals seeking a balance between affordability and access to Orange County’s amenities. With a median home value hovering around $931,855 (based on recent data), the city offered a more accessible entry point into the Orange County housing market compared to pricier neighbors like Newport Beach or Laguna Beach. Single-family homes dominated the housing stock, making up over 55% of properties, while condos, townhouses, and apartments catered to a mix of renters and first-time buyers.
The market was already competitive, with steady appreciation rates—averaging 7.36% annually over the past decade—outpacing many national benchmarks. However, demand was relatively predictable, driven by proximity to employment hubs, good schools, and cultural attractions like the annual Strawberry Festival. Then came the pandemic, which upended these patterns and introduced new variables into the equation.
The Pandemic’s Immediate Impact
When COVID-19 hit in early 2020, the initial reaction in Garden Grove mirrored national trends: uncertainty led to a temporary slowdown. Home showings dropped, new listings declined, and buyers hesitated amid economic fears and stay-at-home orders. Across the U.S., home sales fell by as much as 34% in spring 2020, and while Garden Grove didn’t experience declines of that magnitude, the market felt the chill. Sellers were reluctant to list their homes, fearing exposure to the virus or a potential drop in value, while buyers paused to assess job security and financial stability.
Yet, this slowdown was short-lived. By mid-2020, bolstered by record-low mortgage rates (dipping below 3%) and a surge in demand for more spacious homes, Garden Grove’s market began to rebound. The pandemic didn’t just disrupt the market—it reshaped what buyers wanted from their homes and where they wanted to live.
Remote Work and the Space Race
One of the most significant post-pandemic shifts in Garden Grove’s real estate demand has been the influence of remote work. As companies shifted to remote or hybrid models, the need to live close to downtown Los Angeles or other urban employment centers diminished. For Garden Grove residents, this meant less emphasis on commute times and more focus on home functionality. Buyers began prioritizing larger homes with dedicated office spaces, bigger yards, and room for multi-generational living—a stark departure from the pre-pandemic preference for smaller, low-maintenance properties.
This “space race” drove demand for single-family homes, which already comprised the majority of Garden Grove’s housing stock. Data from 2023-2024 shows that homes with three or four bedrooms sold faster than condos or townhouses, with average days on market dropping to just 10 days in some months. The median sale price climbed to $1.01 million by early 2025, a 15.6% increase from the previous year, reflecting both heightened demand and limited supply. Buyers weren’t just looking for square footage—they wanted homes that could double as offices, gyms, and sanctuaries, a trend fueled by the prolonged time spent indoors during the pandemic.
Suburban Appeal in a Post-Urban World
Nationally, the pandemic sparked a migration from dense urban centers to suburban and rural areas, as people sought lower density and more outdoor space. Garden Grove, with its suburban character and proximity to urban amenities, became a prime beneficiary of this shift. While not as rural as some of the outlying areas that saw explosive growth (like Boise or Fayetteville), Garden Grove offered a compelling middle ground: quieter neighborhoods, larger lots, and access to parks, all within a short drive of Orange County’s beaches and entertainment hubs.
This suburban appeal attracted a mix of buyers, including young families and first-time homeowners priced out of more expensive Orange County cities. Interestingly, 79% of Garden Grove homebuyers in late 2024 searched to stay within the metropolitan area, while 21% looked to move out, suggesting a strong local retention rate. Meanwhile, an influx of buyers from high-cost metros like San Francisco and Seattle added pressure to the market, drawn by Garden Grove’s relative affordability and quality of life.
A Seller’s Market Intensifies
The post-pandemic demand surge collided with a persistent supply shortage, creating a fiercely competitive seller’s market. Garden Grove’s inventory has remained tight, averaging just 1.5 months of supply in 2023-2024—well below the 6-month threshold that indicates a balanced market. With only 81 active listings per month and 48 homes sold, properties moved quickly, often receiving multiple offers. Homes sold in an average of 29-37 days in 2025, down from 62 days at the pandemic’s outset, and many fetched 2-5% above list price.
This competitiveness reflects broader post-pandemic trends: low interest rates (until late 2022), supply chain disruptions limiting new construction, and homeowner reluctance to sell in a tight market all constrained inventory. In Garden Grove, the majority of housing stock dates back to the post-World War II boom (60.64% built between the 1940s and 1960s), leaving little room for rapid expansion. New listings couldn’t keep pace with demand, amplifying price growth and buyer urgency.
Economic Factors and Affordability Challenges
Economic conditions have played a dual role in shaping Garden Grove’s post-pandemic real estate landscape. On one hand, low mortgage rates and stimulus payments in 2020-2021 fueled purchasing power, driving up demand and prices. On the other, rising interest rates since late 2022 (a Federal Reserve response to inflation) have cooled demand slightly, though not enough to balance the market. By March 2025, rates have stabilized but remain higher than pandemic lows, impacting affordability.
Garden Grove’s median sale price of $1.01 million is 142% above the national average, and the cost of living is 56% higher than the U.S. benchmark. This poses challenges for first-time buyers, despite the city’s relative affordability within Orange County. Property taxes, governed by California’s Proposition 13, remain a factor, but rapid price appreciation has outpaced wage growth, squeezing affordability further. For renters—46.81% of residents—rising home prices have also pushed up rental costs, reflecting the broader housing crunch.
Changing Buyer Demographics and Preferences
The pandemic didn’t just alter what buyers want; it changed who’s buying. Millennials, now the largest generation in the U.S., have increasingly entered Garden Grove’s market, embracing homeownership as remote work and family planning take priority. First-time buyers, who made up 36% of U.S. home purchases in 2020 (up from 32% pre-pandemic), have been a driving force, though rising prices have crowded some out.
Buyer preferences have also shifted toward sustainability and resilience. With Garden Grove projected to see a 228% increase in days above 89°F over the next 30 years, energy-efficient homes with modern HVAC systems and outdoor amenities like shaded patios are gaining traction. Technology has become a selling point too—virtual tours and digital transactions, popularized during lockdowns, remain a staple of the buying process.
The Commercial Real Estate Angle
While residential demand has soared, Garden Grove’s commercial real estate market tells a different story. The shift to remote work reduced demand for office space, though retail has seen a surprising resurgence. Post-pandemic, demand for retail square footage has grown beyond pre-2020 levels nationally, and Garden Grove’s local businesses—particularly in mixed-use areas—have benefited from suburban foot traffic. Industrial space, driven by e-commerce, has also seen steady demand, though supply constraints mirror the residential sector.
Looking Ahead: What’s Next for Garden Grove?
As of March 16, 2025, Garden Grove’s real estate market remains a dynamic, evolving space. The post-pandemic shifts—remote work, suburban appeal, and a relentless seller’s market—show no signs of fully reversing. However, several factors could shape the future. A sustained increase in interest rates might temper demand, though Garden Grove’s strong fundamentals suggest resilience. New construction, if supply chain issues ease, could alleviate inventory shortages, but zoning and land constraints may limit growth.
For buyers, the market demands agility—quick decisions, competitive offers, and a willingness to adapt to rising costs. Sellers, meanwhile, hold significant leverage, though pricing strategically remains key in a market where hot homes sell 5% above list price in as little as 12 days. Investors, drawn by appreciation rates like the 8.63% seen in the past year, will find opportunities, particularly in neighborhoods with untapped potential.
Conclusion
The post-pandemic era has redefined Garden Grove’s real estate demand, blending national trends with local flavor. From the rise of remote work to the premium on space and suburban living, the city has adapted to a new normal where homes are more than just shelter—they’re multifunctional hubs for modern life. As prices climb and competition persists, Garden Grove stands as a microcosm of resilience and transformation, offering lessons for buyers, sellers, and observers alike. Whether you’re eyeing a Craftsman bungalow or a sleek condo, one thing is clear: the pandemic’s legacy in Garden Grove’s housing market is here to stay.
