South Huntington Beach, often referred to as the gem of Orange County’s coastline, is a vibrant slice of Surf City USA. Nestled between the Pacific Ocean and the bustling inland communities, this area boasts pristine beaches, family-friendly neighborhoods, and a laid-back lifestyle that draws homebuyers, investors, and tourists alike. As we step into late 2025, the real estate landscape here is buzzing with anticipation. With the current date marking August 19, 2025, we’re witnessing a surge in developments that promise to reshape the skyline, boost the local economy, and enhance community living. From luxurious oceanfront homes to innovative mixed-use projects, South Huntington Beach is on the cusp of a transformation driven by a mix of private investments and city planning initiatives.
What makes South Huntington Beach particularly appealing? It’s the perfect blend of suburban tranquility and urban accessibility. Areas like Southeast Huntington Beach, near Bolsa Chica Ecological Reserve, offer a serene escape with easy access to Pacific Coast Highway (PCH) for commutes to Los Angeles or San Diego. The median home price has climbed to around $1.33 million, reflecting a 3.5% year-over-year increase, fueled by low inventory and high demand. This competitive market, where homes often receive multiple offers within days, is set to evolve further with upcoming projects that address housing shortages while preserving the coastal charm. In this blog post, we’ll dive deep into the key developments, market trends, infrastructure upgrades, and their broader implications—clocking in at over 1,600 words to give you a comprehensive view.
Current Real Estate Market Trends in South Huntington Beach
Before exploring the new builds, let’s set the stage with the 2025 market dynamics. Huntington Beach as a whole has seen home prices rise by about 4.9% in the past year, with Southeast Huntington Beach mirroring this trend at a similar pace. The median sale price hovers at $1.3 million, up 11.5% from previous highs, indicating a fast-paced, seller-favorable environment. Inventory remains tight, with only around 185 active listings citywide, creating a “frozen” market where properties sit longer if not priced right. Buyers are increasingly drawn to sustainable and smart homes, with features like energy-efficient designs and home automation becoming standard in new constructions.
In South Huntington Beach specifically, neighborhoods like those near Bolsa Chica are hot spots for investment. The area’s proximity to wetlands and beaches appeals to eco-conscious buyers, while commercial growth adds value. Trends point to a shift toward balanced inventory levels by late 2025, potentially easing competition as new developments come online. Interest rates stabilizing around 6-7% are encouraging more first-time buyers and investors, particularly in multifamily units. However, challenges like state housing mandates and environmental regulations are influencing developer strategies, pushing for denser, mixed-use projects. Overall, experts predict nuanced growth, with coastal properties appreciating faster due to limited land availability.
Major Upcoming Residential Projects
The residential sector is leading the charge in South Huntington Beach’s evolution. One of the most talked-about initiatives is the redevelopment of the 92-acre beachfront property owned by California Resources Corporation. Located along PCH between Goldenwest Street and Seapoint Street, just south of the Bolsa Chica wetlands, this former oil and gas site could host up to 800 homes. The proposal includes a mix of single-family residences, townhomes, and possibly apartments, alongside 23 acres of parks and open space. This massive project aims to convert industrial land into a vibrant coastal community, addressing Huntington Beach’s housing needs amid ongoing legal battles over state mandates. As of mid-2025, the rezoning application is under review, with City Council consideration expected in mid-2026. Approvals from the California Coastal Commission are crucial, and environmental cleanup from prior oil operations adds complexity. If greenlit, groundbreaking could occur by 2027, potentially adding significant inventory to the market.
Closer to realization is the Magnolia Tank Farm redevelopment, a 29-acre site near Magnolia Avenue and PCH. Developer Shopoff Realty Investments secured City Council approval in September 2024, paving the way for over 200 single-family homes and townhomes, plus a 50-unit affordable apartment complex. Half of the affordable units are reserved for hotel employees and local residents, promoting workforce housing. The project, which also includes green spaces, is slated to break ground in summer or fall 2025, with completion phases rolling out through 2027-2028. This development exemplifies the shift from industrial to residential use, enhancing South HB’s appeal with modern, eco-friendly homes.
Another highlight is the Essex & Gage townhome community by Landsea Homes, located on Edinger Avenue just west of Gothard Street—a central spot with easy access to South HB amenities. This 129-unit project features two collections: Essex (3-4 bedrooms, 1,572-1,688 sq ft) and Gage (2-4 bedrooms, 1,047-2,516 sq ft), both with attached garages, smart-home tech, and open-concept designs tailored for coastal living. Groundbreaking occurred in February 2025, and the community is set to debut in late spring 2025, with model homes opening soon after. Priced competitively for the market, these homes emphasize sustainability and proximity to beaches, schools, and shopping at Pacific City.
Smaller but notable is the Pacific Shores community, a brand-new enclave in South Huntington Beach offering modern homes with coastal vibes. Details are emerging, but it focuses on luxury single-family options near the ocean. Additionally, the Bolsa Chica Senior Care Community is in planning, providing specialized housing for aging residents in the southern wetlands area. These projects collectively could add over 1,000 units, alleviating some inventory pressures while catering to diverse demographics—from families to retirees.
Commercial and Mixed-Use Developments
South Huntington Beach isn’t just about homes; commercial growth is integral to creating self-sustaining neighborhoods. The Magnolia Tank Farm project integrates a 215-room boutique hotel and 19,000 square feet of retail space, blending hospitality with shopping to attract tourists and locals. This mixed-use approach, approved by the Coastal Commission, will boost the local economy by creating jobs and enhancing PCH’s vibrancy.
The 92-acre proposal also includes up to 350 hotel rooms and retail elements, transforming the coastal stretch into a destination hub. In Huntington Gateway Business Park Phase III, under plan check, expect expanded commercial spaces supporting tech and research firms, indirectly benefiting South HB through job creation. The Ellis Avenue Mixed-Use Development promises retail and residential integration, fostering walkable communities.
These initiatives align with the city’s Economic Development Strategy, aiming for vibrant, job-rich environments. By 2026, expect increased foot traffic along PCH, with new eateries, shops, and hotels elevating South HB’s status as a premier coastal spot.
Infrastructure Improvements Supporting Growth
No development thrives without solid infrastructure. Huntington Beach’s 2024/25 Capital Improvement Program (CIP) allocates $35 million across 43 projects, many benefiting South HB. Key efforts include paving residential streets and rehabilitating Bolsa Avenue from Edwards to Bolsa Chica, improving access in southern neighborhoods. Tide flex valves in Huntington Harbour catch basins will combat flooding, crucial for coastal properties.
Park upgrades at Greer, Worthy, Langenbeck, and Pleasant View enhance recreational spaces, making the area more attractive to families. Water projects, like main replacements and new Well 14, ensure reliable supply for growing populations. These align with the General Plan updates, focusing on sustainable infrastructure to support real estate expansion.
Impacts on the Community, Economy, and Environment
These developments promise profound impacts. Economically, they’ll create hundreds of jobs in construction, hospitality, and retail, stimulating local businesses. Housing additions could stabilize prices by increasing supply, benefiting first-time buyers amid the competitive market. Community-wise, affordable units and parks will promote inclusivity, while smart homes advance sustainability.
Environmentally, converting oil sites reduces pollution, but concerns linger over wetlands preservation and traffic. The Coastal Commission oversight ensures balanced growth.
Challenges and Considerations
Not all is smooth sailing. Controversies surround the 92-acre project, including cleanup costs and state housing fights. Rising sea levels pose risks, and community pushback on density could delay timelines. Buyers should monitor approvals closely.
Conclusion: A Bright Future for South Huntington Beach
As 2025 unfolds, South Huntington Beach stands at the threshold of exciting change. From the ambitious Magnolia and 92-acre projects to Essex & Gage’s modern townhomes, these developments will enrich the area’s fabric. With supportive infrastructure and a thriving market, now’s the time to invest or relocate. Whether you’re a buyer, seller, or enthusiast, keep an eye on Surf City’s southern shores— the waves of progress are just beginning.
