As we approach 2025, Garden Grove, California, remains a dynamic and evolving market for rental properties. Located in the heart of Orange County, this city blends suburban charm with proximity to major urban hubs like Los Angeles and Anaheim, making it an attractive destination for renters and investors alike. With its diverse population, vibrant community, and ongoing economic shifts, the rental property landscape in Garden Grove is poised for notable changes in the coming year. This blog post delves into the key trends shaping the rental market in Garden Grove for 2025, offering insights for tenants, landlords, and investors based on current data, economic forecasts, and local developments.
Rising Rental Prices Amid Strong Demand
One of the most prominent trends in Garden Grove’s rental market for 2025 is the continued upward pressure on rental prices. As of early 2025, the average rent for an apartment in Garden Grove hovers around $2,135 to $2,686 per month, depending on the source and unit type. This range reflects a steady increase from previous years, driven by robust demand and limited supply. For instance, a one-bedroom apartment averages approximately $1,985, while two-bedroom units can climb to $2,307 or higher. These figures position Garden Grove as a relatively expensive rental market, though it remains more affordable than some neighboring Orange County cities like Irvine or Newport Beach.
The demand for rentals in Garden Grove is fueled by several factors. Its proximity to major attractions like Disneyland and Knott’s Berry Farm, coupled with a growing job market in sectors like healthcare, education, and retail, attracts a mix of young professionals, families, and retirees. Additionally, the city’s diverse cultural offerings, such as the annual Strawberry Festival and a thriving Southeast Asian culinary scene, enhance its appeal. However, with only 46% of households being renter-occupied (approximately 22,168 units), the supply of available rentals struggles to keep pace with this demand, pushing prices upward. For 2025, experts anticipate a rental price increase of around 4%—a moderate rise compared to some national markets but significant enough to impact affordability.
Shift Toward Multi-Family and ADU Developments
A notable trend shaping Garden Grove’s rental landscape in 2025 is the growing emphasis on multi-family housing and accessory dwelling units (ADUs). Single-family detached homes have historically dominated the city’s housing stock, accounting for over 55% of units. However, as land becomes scarcer and construction costs rise, developers and homeowners are increasingly turning to multi-family projects and ADUs to maximize space and rental income.
California’s progressive ADU laws, which allow single-family properties to add units up to 800 square feet without requiring owner occupancy through 2024 (a policy likely to extend into 2025), have spurred a wave of backyard cottages and garage conversions in Garden Grove. These units appeal to renters seeking affordable, smaller spaces—often priced below the $2,000 mark for studios or one-bedrooms—and provide landlords with additional revenue streams. In 2025, expect to see more properties advertising “ADU available” alongside traditional rentals, particularly in neighborhoods like Midway City and West Garden Grove, where lot sizes accommodate such additions.
Multi-family developments, such as apartment complexes and townhomes, are also gaining traction. With 23.95% of Garden Grove’s housing already consisting of large apartment buildings, new projects in 2025 will likely target mid-tier renters willing to pay $2,000 to $2,500 for modern amenities like in-unit laundry, parking, and community spaces. This shift reflects a broader move away from sprawling single-family rentals toward denser, more efficient housing options—a trend that aligns with both environmental goals and economic realities.
Neighborhood Spotlight: Where Renters Are Heading
Garden Grove’s rental market varies significantly by neighborhood, and 2025 will highlight distinct hotspots for renters. Downtown Garden Grove, with its walkable streets, vintage car shows, and proximity to Main Street’s dining scene, remains a top choice despite higher costs. Rents here often exceed the city average, reflecting the area’s urban vibe and access to public transit (though the city’s transit score of 37 suggests most residents still rely on cars).
Conversely, Midway City offers some of the most affordable rents, averaging $1,783 per month, making it a haven for budget-conscious tenants. Buena Park, another adjacent area, sees rents around $2,041, appealing to those seeking a balance of cost and convenience. West Garden Grove, with its competitive housing market and median home prices nearing $1.1 million, is also seeing rental growth, particularly for luxury apartments and ADUs catering to higher-income renters willing to pay $2,500 or more.
In 2025, expect neighborhoods near educational institutions like Golden West College and Coastline Community College to attract more students and faculty, driving demand for smaller, affordable units. Meanwhile, areas with larger lots—ideal for ADU construction—will likely see an influx of young professionals and small families seeking modern, standalone rentals.
Affordability Challenges and Tenant Priorities
Despite its appeal, Garden Grove’s rental market in 2025 will face affordability challenges. The city’s overall cost of living is 56% higher than the national average, and rents averaging 35% above the U.S. median ($1,559) strain many households. With rental inflation outpacing wage growth—rents have risen 27% since 2021 compared to 19% for earnings—tenants are hitting an “affordability ceiling.” This pressure may lead to a slight cooling of rental price growth in late 2025, as landlords adjust to retain tenants rather than risk vacancies.
Tenant priorities are also shifting. In 2025, renters in Garden Grove will likely prioritize properties with energy-efficient features (e.g., solar panels, smart thermostats) and flexible lease terms, reflecting broader economic and environmental concerns. Outdoor space, whether a private patio or access to parks like Garden Grove Park, will remain a key draw, especially for families and pet owners. Additionally, the rise of remote work continues to influence preferences, with some renters seeking units with dedicated office nooks or high-speed internet—amenities that landlords may need to highlight to stay competitive.
Investor Opportunities and Market Dynamics
For investors, Garden Grove’s rental market in 2025 offers both opportunities and challenges. The city’s status as a seller’s market—homes sell in 29 to 37 days, often 2-5% above list price—extends to rentals, where low vacancy rates (hovering around 5%) ensure steady cash flow. Properties with ADUs or multi-family potential are particularly lucrative, offering higher yields than traditional single-family rentals. For example, a $925,000 home with a $2,000/month main unit and a $1,500/month ADU could generate $42,000 annually, offsetting mortgage costs in a high-interest environment.
However, investors must navigate rising property taxes (capped at 1% of assessed value under Proposition 13, plus local levies) and maintenance costs, which are climbing due to inflation. The competitive housing market, with a Redfin Compete Score of 83 out of 100, also means acquisition prices are steep—median home values reached $1.01 million in early 2025, up 15.6% from the prior year. Savvy investors may focus on fixer-uppers or distressed properties, adding value through renovations or ADU conversions to capitalize on rental demand.
Environmental and Regulatory Influences
Environmental risks and regulatory changes will also shape Garden Grove’s rental trends in 2025. While the city faces minimal risk from wildfires and severe winds, 99% of properties are at major risk of heat, with “feels like” temperatures expected to soar due to a 228% increase in days over 89°F over the next 30 years. This could drive demand for air-conditioned units, increasing utility costs for tenants and prompting landlords to invest in cooling upgrades.
On the regulatory front, California’s tenant-friendly laws—such as rent control caps and eviction protections—will continue to influence the market. Garden Grove landlords must stay compliant while balancing profitability, particularly as new state policies may encourage rental supply growth through incentives for multi-family housing. These factors could temper rent hikes but also spur innovation in property management and development.
Conclusion: What to Expect in 2025
Garden Grove’s rental property market in 2025 will be defined by rising prices, a shift toward multi-family and ADU options, and evolving tenant needs—all set against a backdrop of strong demand and limited supply. For renters, this means navigating higher costs with a focus on value-added features, while landlords and investors can capitalize on the city’s competitive edge by adapting to these trends. Whether you’re a tenant seeking a cozy ADU in West Garden Grove or an investor eyeing a multi-unit property near Downtown, staying informed about these dynamics will be key to thriving in this vibrant market.
As Garden Grove continues to grow, its rental landscape will reflect both its unique character and broader Southern California trends. By understanding these shifts, stakeholders can make strategic decisions that align with the city’s trajectory in 2025 and beyond.
