Tustin, California, nestled in the heart of Orange County, is a vibrant city known for its family-friendly neighborhoods, excellent schools, and proximity to major employment hubs. With a thriving real estate market, Tustin offers a range of housing options, including single-family homes and townhomes, each catering to different lifestyles and budgets. As of December 2024, the Tustin housing market remains a seller’s market, characterized by high demand, rising prices, and limited inventory. This blog post dives deep into the trends, pricing, and key considerations for single-family homes and townhomes in Tustin, providing valuable insights for prospective buyers, sellers, and investors.
Overview of the Tustin Real Estate Market
The Tustin housing market is highly competitive, with a Redfin Compete Score of 81 out of 100, indicating strong buyer interest and multiple offers on many properties. According to recent data, the median home sale price in Tustin was $1,172,875 in December 2024, reflecting an 11.5% increase from the previous year. Homes typically sell within 30 days, though the average listing age has risen to 30 days, up 37.6% from last year, suggesting a slight slowdown in sales pace compared to the frenetic market of prior years. The median price per square foot stands at $678, up from $664 the previous year, highlighting the premium placed on Tustin properties.
This competitive landscape is driven by several factors:
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Strong Job Market: Orange County’s low unemployment rate and growing business sector attract professionals, increasing housing demand.
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Family-Friendly Appeal: Tustin’s top-rated schools, safe neighborhoods, and community events like the Tustin Street Fair make it a magnet for families.
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Limited Inventory: A 30% decrease in homes listed for sale since March 2023, coupled with constrained new construction, has created a supply shortage.
Within this market, single-family homes and townhomes present distinct opportunities and challenges. Let’s explore each in detail.
Single-Family Homes in Tustin
Market Trends
Single-family homes are a cornerstone of Tustin’s housing market, accounting for approximately 36.42% of the city’s housing units. These homes are highly sought after for their spacious layouts, private yards, and sense of permanence, appealing to families and long-term residents. In December 2024, the median sale price for single-family homes in Tustin was significantly higher than that of condos and townhomes, with single-family homes selling for $668,000 more on average last month. The median closed price for single-family homes in Orange County, including Tustin, was $1,430,000 in April 2025, reflecting robust demand.
Key trends for single-family homes include:
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Price Growth: Single-family home prices rose 10.3% month-over-month last month, with a year-over-year increase of 11.5% for all home types in Tustin. Prices for homes with three bedrooms increased by 12.4%, four bedrooms by 15.8%, and five or more bedrooms by 20.6%.
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Time on Market: Single-family homes spend an average of 50 days on the market, 20 days longer than condos and townhomes, due to their higher price points and larger buyer commitment.
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Competitive Sales: On average, single-family homes sell for 0.90% above list price, though 40.6% of homes sold below asking price in December 2024, indicating some room for negotiation in a seller’s market.
Advantages of Single-Family Homes
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Space and Privacy: Single-family homes offer larger floor plans, private yards, and greater separation from neighbors, ideal for families or those seeking a quiet retreat.
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Customization: Owners have more freedom to renovate, expand, or landscape without the restrictions often found in townhome communities.
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Investment Potential: With a 92.72% appreciation rate over the past decade (6.78% annually), single-family homes in Tustin have proven to be a strong long-term investment.
Challenges
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Higher Costs: The median list price for single-family homes in Orange County is $1,995,000, significantly higher than the $889,000 for condos and townhomes. In Tustin, buyers need an annual income of approximately $215,000 to afford a median-priced home with a 25% down payment.
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Maintenance: Single-family homes require more upkeep, including landscaping, exterior repairs, and utility costs, which can strain budgets.
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Limited Inventory: With only 83 homes for sale in Tustin in December 2024, single-family home inventory is particularly tight, intensifying competition.
Example Listing
A recent listing at 14261 Clarissa in North Tustin showcases the appeal of single-family homes. This 4-bedroom, 2.5-bathroom ranch-style home spans 1,933 square feet on an 11,375-square-foot lot. Features include double Dutch doors, a tile entry, KitchenAid double ovens, and a spacious family room with a brick fireplace. Priced in the competitive North Tustin market, where the median sale price is $1.7 million, this home reflects the premium placed on single-story, family-oriented properties.
Townhomes in Tustin
Market Trends
Townhomes, along with condos, make up a significant portion of Tustin’s housing stock, with row houses and attached homes comprising 15.29% of units. These properties appeal to young professionals, downsizers, and first-time buyers seeking affordability and low-maintenance living. In Tustin, townhomes and condos closed at a median price of $787,000 in April 2025, down from $827,500 the previous week, indicating some price softening compared to single-family homes. Last month, townhomes and condos sold for $73 more per square foot than single-family homes, reflecting their compact, high-demand designs.
Key trends for townhomes include:
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Price Fluctuations: While single-family home prices rose, condo and townhome sale prices dipped by 2.6% month-over-month last month. However, year-over-year, prices for two-bedroom homes (often townhomes) increased by 13.2%.
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Faster Sales: Townhomes and condos sell in about 30 days, 20 days faster than single-family homes, due to their lower price points and appeal to a broader buyer pool.
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Price per Square Foot: The median price per square foot for townhomes and condos rose 27.1% month-over-month, compared to a 2% increase for single-family homes, highlighting their value in a space-constrained market.
Advantages of Townhomes
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Affordability: With a median list price of $889,000 in Orange County, townhomes are more accessible than single-family homes, making them ideal for first-time buyers or those with moderate incomes.
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Low Maintenance: Homeowners’ associations (HOAs) often handle exterior maintenance, landscaping, and amenities like pools or gyms, reducing the burden on owners.
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Modern Amenities: Many Tustin townhomes, such as those in the Levity at Tustin Legacy community, feature open-concept layouts, luxury vinyl flooring, quartz countertops, and stainless steel appliances, appealing to buyers seeking move-in-ready homes.
Challenges
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HOA Fees: Townhome buyers must account for monthly HOA fees, which can range from $200 to $500 or more, impacting overall affordability.
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Limited Space: Townhomes typically offer smaller floor plans and shared walls, which may not suit buyers needing expansive living areas or privacy.
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Appreciation Rates: While townhomes appreciate, their growth may lag behind single-family homes due to lower demand from families and long-term investors.
Example Listing
A standout townhome listing at 159 Waypoint in Tustin Legacy exemplifies modern townhome living. This tri-level, 3-bedroom, 3-bathroom home features an open-concept kitchen with a large island, white shaker cabinets, and a custom tile backsplash. With luxury vinyl plank flooring and abundant natural light, this property caters to buyers seeking style and convenience in a competitive market. Such listings highlight the appeal of townhomes in Tustin’s newer communities.
Comparing Single-Family Homes and Townhomes
|
Factor |
Single-Family Homes |
Townhomes |
|---|---|---|
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Median Sale Price |
$1,430,000 (Orange County, April 2025) |
$787,000 (Orange County, April 2025) |
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Price per Sq. Ft. |
$678 (Tustin, Dec 2024) |
$751 (Tustin, last month) |
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Time on Market |
50 days |
30 days |
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Appreciation (10 yrs) |
92.72% (6.78% annually) |
Varies, generally lower |
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Maintenance |
High (owner-managed) |
Low (HOA-managed) |
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Space |
Larger lots, private yards |
Smaller, shared walls |
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Buyer Profile |
Families, long-term residents |
Young professionals, first-time buyers, downsizers |
Key Considerations for Buyers
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Budget: Single-family homes require a higher income and down payment, while townhomes offer a more affordable entry point. For a $1.17 million home in Tustin, buyers need a $215,000 annual income with 25% down.
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Lifestyle: Families prioritizing space and privacy may prefer single-family homes, while busy professionals or downsizers may favor townhomes for their low-maintenance appeal.
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Investment Goals: Single-family homes offer stronger appreciation, making them ideal for long-term investments. Townhomes, however, provide cash flow potential for rental investors due to high demand in Tustin’s rental market.
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Market Timing: With Tustin’s seller’s market, buyers must act quickly and consider pre-approval to compete. Townhomes may offer slightly less competition due to their broader buyer pool.
Tips for Navigating the Tustin Market
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Work with a Local Expert: Partner with a Tustin real estate agent to navigate the fast-paced market and identify properties that match your needs.
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Get Pre-Approved: Mortgage pre-approval signals seriousness to sellers and streamlines the offer process.
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Be Flexible: In a low-inventory market, buyers may need to compromise on features or consider up-and-coming neighborhoods like Tustin Ranch or Tustin Legacy.
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Monitor Trends: Stay updated on price fluctuations and inventory changes to time your purchase or sale effectively.
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Highlight Property Features: Sellers should emphasize unique aspects, such as renovated kitchens or proximity to schools, to attract competitive offers.
Future Outlook for Tustin’s Real Estate Market
Looking ahead, Tustin’s real estate market is expected to remain competitive, driven by its desirable location and limited land for new development. Rising temperatures and environmental risks, such as a 214% increase in days over 92°F over the next 30 years, may influence buyer preferences for energy-efficient homes or properties with cooling features. Additionally, 10% of Tustin properties face severe flood risk, and 91% are at risk of wildfire, which could impact insurance costs and buyer decisions.
For single-family homes, demand will likely stay strong among families and high-income buyers, though prices may stabilize as mortgage rates fluctuate. Townhomes will continue to attract first-time buyers and investors, particularly in newer communities with modern amenities. As inventory remains tight, both property types will benefit from Tustin’s strong appreciation rates and seller’s market dynamics.
Conclusion
The Tustin real estate market offers diverse opportunities for buyers and investors, with single-family homes and townhomes catering to distinct needs. Single-family homes provide space, privacy, and strong investment potential but come with higher costs and maintenance. Townhomes offer affordability, low maintenance, and modern designs, ideal for first-time buyers or those seeking convenience. In a competitive seller’s market, understanding these dynamics is crucial for making informed decisions.
Whether you’re eyeing a sprawling ranch-style home in North Tustin or a sleek townhome in Tustin Legacy, partnering with a local expert and acting decisively are key to success. As Tustin’s market continues to evolve, staying informed about trends and leveraging professional guidance will help you navigate this dynamic landscape and achieve your real estate goals.
