Aliso Viejo, a vibrant and picturesque city nestled in the heart of Orange County, California, is gearing up for an exciting transformation in 2025. Known for its family-friendly neighborhoods, top-rated schools, and proximity to stunning natural landscapes like Aliso and Wood Canyons Wilderness Park, this community has long been a sought-after destination for homebuyers and professionals alike. As the city continues to grow, several upcoming housing projects slated for 2025 promise to enhance its appeal, address state housing needs, and offer modern living spaces for a diverse range of residents. In this blog post, we’ll dive into the details of these developments, explore their potential impact on the local housing market, and discuss what they mean for the future of Aliso Viejo.
The Housing Landscape in Aliso Viejo
Before delving into the specifics of the upcoming projects, it’s worth understanding the current housing context in Aliso Viejo. As of early 2025, the median home price in the city hovers around $913,750, reflecting a 4.8% increase from the previous year, according to real estate market reports. This upward trend underscores the area’s desirability, driven by its blend of suburban charm, modern amenities, and excellent connectivity to employment hubs like Irvine and Laguna Beach. However, like much of California, Aliso Viejo faces pressure to meet the state’s Regional Housing Needs Assessment (RHNA) requirements, which mandate the construction of 1,195 new units by 2029. These upcoming projects are poised to play a critical role in helping the city achieve this goal while fostering a pedestrian-friendly, community-oriented environment.
Avalon Aliso Viejo: A Mixed-Use Marvel
One of the most anticipated housing projects in Aliso Viejo for 2025 is Avalon Aliso Viejo, a 4.4-acre mixed-use development spearheaded by AvalonBay Communities, Inc., in partnership with ValueRock Realty. This ambitious project is targeting a groundbreaking in 2025, with a projected completion date in late 2027, pending city review and approval timelines. Avalon Aliso Viejo aims to redefine urban living in this suburban enclave by combining residential, retail, and recreational spaces into a cohesive, walkable community.
Project Highlights
- Residential Units: The development will feature 362 thoughtfully designed apartment units, contributing significantly to the city’s RHNA goals. These units are intended to cater to a mix of residents, from young professionals to families, offering modern amenities and flexible living spaces.
- Mixed-Use Design: Beyond housing, Avalon Aliso Viejo will integrate retail and dining options, creating a “village-style” environment where residents can live, shop, and socialize without leaving the premises. The project includes a wrap-around parking structure with 543 spaces, including one below-ground level, ensuring convenience for residents and visitors alike.
- Architectural Vision: Designed by TCA Architects, a firm renowned for its work on mixed-use and multifamily projects across Orange County, Avalon Aliso Viejo draws inspiration from the surrounding natural landscape. The building tucks into the southwest hillside, minimizing its visual impact on nearby neighborhoods, and features materials like stucco in natural tones, composite siding, and perforated metal panels that complement the adjacent retail center.
- Community Impact: As the first major real estate development in Aliso Viejo since the mid-2010s, this project promises to revitalize an underutilized asphalt lot into a pedestrian-friendly hub. It’s designed to boost foot traffic in the city’s core, particularly around the Aliso Viejo Town Center, enhancing the local economy and quality of life.
Timeline and Next Steps
Avalon Aliso Viejo is currently in the entitlement process, meaning it’s still navigating city approvals and community feedback. Residents interested in staying updated or engaging with the project team can sign up for updates at avalonalisoviejo.com or email info@avalonalisoviejo.com. If all goes according to plan, construction will commence in 2025, setting the stage for a vibrant new addition to the city by 2027.
The Commons at Aliso Viejo Town Center: Expanding the Vision
Another significant project tied to the 2025 horizon is the broader redevelopment of The Commons at Aliso Viejo Town Center, a 21-acre mixed-use initiative led by ValueRock Realty. While the retail component of this project is nearing completion—with a grand opening scheduled for December 14, 2024—the residential phase, featuring a proposed 343-unit housing development, is expected to gain momentum in 2025. This project builds on the success of transforming a vacant Lowe’s store into a thriving multi-tenant community center, signaling a shift toward adaptive reuse and sustainable urban planning.
Project Highlights
- Residential Component: The proposed 343-unit residential project will complement the existing 200,000-square-foot retail space, which already boasts tenants like Tesla, 99 Ranch Market, Daiso, and Philz Coffee. Additional tenants, such as Bowlero, are slated to open in 2025, further enhancing the area’s appeal.
- Adaptive Reuse Success: ValueRock’s innovative approach—repurposing a nearly 200,000-square-foot big-box store into a dynamic mixed-use center—demonstrates a forward-thinking response to changing retail trends. The residential addition will solidify The Commons as a live-work-play destination.
- Economic and Social Benefits: By integrating housing with retail and entertainment, The Commons aims to create a self-sustaining ecosystem that reduces reliance on cars and fosters community interaction. This aligns with Aliso Viejo’s goal of becoming a more walkable city.
Timeline and Progress
While the retail phase is nearly complete, the residential portion remains in the planning stages, with 2025 marking a pivotal year for advancing approvals and breaking ground. The success of the retail rollout suggests strong momentum for the housing component, making it a project to watch closely.
Why These Projects Matter
The upcoming housing projects in Aliso Viejo for 2025 are more than just new buildings—they represent a strategic response to broader trends and challenges facing the region. Here’s why they’re significant:
Addressing Housing Shortages
California’s ongoing housing crisis has put pressure on cities like Aliso Viejo to increase supply, particularly for affordable and workforce housing. Avalon Aliso Viejo and The Commons collectively propose over 700 new units, making a substantial dent in the city’s RHNA target of 1,195 units by 2029. These developments will help ensure compliance with state mandates while providing much-needed homes.
Enhancing Community Connectivity
Both projects emphasize walkability and mixed-use design, aligning with modern urban planning principles that prioritize convenience and sustainability. By clustering housing, retail, and dining options, they reduce the need for long commutes and encourage a more connected, community-focused lifestyle—something Aliso Viejo residents have long valued.
Boosting the Local Economy
The influx of new residents and visitors drawn to these developments will stimulate local businesses, particularly in the Aliso Viejo Town Center area. Increased foot traffic and spending power could attract additional retailers and restaurants, further solidifying the city’s reputation as a commercial hub in South Orange County.
Balancing Growth with Preservation
Aliso Viejo is known for its scenic beauty and access to nature, and these projects are designed with that in mind. Thoughtful architectural choices—like Avalon’s hillside integration and use of natural materials—aim to preserve the area’s aesthetic while accommodating growth. This balance is crucial for maintaining the city’s appeal to both current and future residents.
What to Expect in the Housing Market
As these projects take shape, they’re likely to influence Aliso Viejo’s housing market in several ways. The addition of hundreds of new units could ease some of the current supply constraints, potentially stabilizing home prices that have risen steadily in recent years. However, given the city’s competitive market—where homes sell in an average of 23 days and often above asking price—the influx of modern apartments may also attract new buyers and renters, sustaining demand.
For prospective homebuyers, 2025 could be an opportune time to explore Aliso Viejo. While single-family homes remain in high demand, the availability of new apartments and condos in mixed-use developments offers alternatives for those seeking lower maintenance or more urban-style living. Investors, too, may find value in the rental potential of these units, given the city’s proximity to employment centers and growing population.
Looking Ahead: Aliso Viejo’s Future
The housing projects slated for 2025 mark a new chapter for Aliso Viejo, one that builds on its reputation as a well-planned, family-friendly community while embracing modern growth. As Avalon Aliso Viejo and The Commons at Aliso Viejo Town Center come to life, they’ll bring fresh energy to the city, blending residential innovation with the natural beauty and suburban charm that define the area.
For residents, these developments offer a chance to enjoy enhanced amenities and a more vibrant local scene. For newcomers, they provide an entry point into a city that’s poised for the future without losing sight of its roots. As we move into 2025, Aliso Viejo stands at the cusp of exciting change—stay tuned to see how these projects shape the community in the years to come.
