Costa Mesa, California, is a vibrant coastal city in Orange County that has steadily emerged as a prime destination for property investors. Known as the “City of the Arts,” it seamlessly blends urban sophistication with a laid-back beach vibe, making it an attractive spot for residents, businesses, and investors alike. As of April 9, 2025, the real estate market in Costa Mesa continues to show resilience and promise, driven by its strategic location, strong rental demand, cultural appeal, and economic vitality. Whether you’re eyeing a single-family home, a multifamily unit, or a commercial property, Costa Mesa offers a compelling case for investment. Let’s dive into the key factors that make this city a standout choice for property investment.
Prime Location and Accessibility
One of Costa Mesa’s biggest draws is its unbeatable location. Nestled in the heart of Orange County, it’s just a few miles from the Pacific Ocean, offering proximity to iconic beaches like Newport Beach and Huntington Beach. This coastal adjacency not only enhances the lifestyle appeal but also drives demand for rental properties, particularly vacation homes and short-term rentals. Beyond the beaches, Costa Mesa is strategically positioned near major employment hubs like Irvine, Santa Ana, and the South Coast Metro area, making it a convenient home base for professionals.
The city’s connectivity is another feather in its cap. Major freeways such as the 405, 55, and 73 crisscross the area, providing easy access to Los Angeles, San Diego, and beyond. For frequent travelers, John Wayne Airport is just minutes away, adding to the city’s logistical appeal. This accessibility ensures that Costa Mesa remains a desirable place to live, work, and visit—key ingredients for sustained property value growth and rental income potential.
Robust Rental Market
Costa Mesa’s rental market is a goldmine for investors. The city’s diverse population—approximately 110,000 residents—includes young professionals, families, and students, many of whom attend nearby Orange Coast College. This mix fuels consistent demand for housing, from single-family homes to multifamily units like duplexes, triplexes, and apartment buildings. According to recent data, the median rental income in Costa Mesa hovers around $4,500 per month, with a cash-on-cash return averaging 2% or higher for long-term rentals. For short-term rentals, such as Airbnb properties, the returns can climb even higher, often exceeding $4,750 monthly, thanks to the city’s proximity to tourist hotspots.
The city’s multifamily properties are particularly lucrative. For instance, a 14-unit complex like 311 W. Wilson St., recently listed with a 4% assumable loan, showcases the potential for steady cash flow with the added bonus of recent renovations. Such properties benefit from Costa Mesa’s status as one of Orange County’s strongest rental markets, driven by its coastal charm and urban amenities. Investors can capitalize on this by acquiring properties that cater to tenants seeking proximity to both the beach and bustling commercial centers.
Economic and Cultural Vibrancy
Costa Mesa’s economy is a powerhouse, supporting over 80,000 jobs across various sectors, including retail, healthcare, education, and technology. The city is home to South Coast Plaza, one of the largest shopping centers in the United States, which attracts millions of visitors annually and bolsters local employment. This economic activity translates into a stable tenant base, as workers seek housing close to their jobs. Additionally, the presence of major employers in nearby Irvine and Newport Beach further strengthens the demand for residential properties in Costa Mesa.
Culturally, the city punches above its weight. The Segerstrom Center for the Arts hosts world-class performances, while the OC Fair & Event Center draws crowds year-round. Neighborhoods like Eastside Costa Mesa and Mesa Verde offer a blend of historic charm and modern upgrades, appealing to both long-term residents and short-term visitors. This cultural richness enhances the city’s desirability, making properties here more than just investments—they’re gateways to a coveted lifestyle.
Property Appreciation Potential
Costa Mesa’s real estate market has demonstrated strong appreciation over the years, a trend that continues into 2025. The median listing price for homes is currently around $1.59 million, with multifamily units often fetching even higher values due to their income-generating potential. For example, the Baker Block apartment complex sold for $113.5 million in 2019, setting a record at nearly $473,000 per unit—the highest per-unit price for a large rental complex in Orange County in over two years at that time. While prices have fluctuated, the long-term trajectory points upward, driven by limited housing supply and high demand.
The city’s zoning policies also play a role. With state mandates pushing for 11,760 new homes by the end of the decade—including over 4,700 for low- and very-low-income households—Costa Mesa is adapting by encouraging development. This includes provisions for accessory dwelling units (ADUs), which savvy investors can leverage to boost rental income on existing properties. As supply struggles to keep pace with demand, property values are likely to rise, offering investors significant capital gains alongside rental returns.
Diverse Investment Opportunities
Costa Mesa caters to a wide range of investment strategies. For those interested in residential properties, options abound: single-family homes in Mesa Verde, duplexes in Eastside Costa Mesa, or triplexes near Orange Coast College. Multifamily properties, like the renovated fourplex at 984 El Camino Drive, offer turnkey solutions with high-end finishes and reliable cash flow. Commercial real estate is equally promising, with shopping centers and office spaces benefiting from the city’s retail and business boom.
The flexibility of investment types is a major plus. Investors can opt for fix-and-flip projects, capitalizing on homes needing upgrades in up-and-coming areas, or focus on long-term holds with multifamily units that provide steady income. Short-term rental investors can tap into the tourism market, especially near attractions like South Coast Plaza and the beach. Whatever the approach, Costa Mesa’s market supports it with strong fundamentals.
Favorable Market Conditions
As of April 2025, interest rates remain relatively low compared to historical highs, making financing more affordable for property purchases. This is a boon for investors looking to maximize returns on leveraged investments. For instance, a duplex purchased at $1 million with a 4% mortgage could yield positive cash flow if rents exceed the monthly PITI (principal, interest, taxes, and insurance) of around $5,000—a realistic target in Costa Mesa’s rental climate.
Moreover, the city’s walkability (Walk Score of 65) and proximity to amenities reduce vacancy rates, as tenants prioritize convenience. The combination of low financing costs, high rental yields, and tenant demand creates a sweet spot for investors seeking both immediate returns and long-term growth.
Community and Lifestyle Appeal
Beyond the numbers, Costa Mesa’s lifestyle offerings enhance its investment appeal. The city’s neighborhoods, like Westside Costa Mesa and Newport Heights, offer a mix of suburban tranquility and urban energy. Residents enjoy top-tier shopping at Fashion Island, dining at The CAMP, and outdoor activities at nearby beaches and parks. This quality of life attracts a stable tenant base willing to pay a premium for well-located properties.
The city’s commitment to arts and education—evident in venues like the Segerstrom Center and institutions like Orange Coast College—further solidifies its reputation as a place where people want to live. For investors, this translates into lower turnover and higher tenant satisfaction, key factors in maintaining profitability.
Navigating Challenges
No investment market is without risks, and Costa Mesa is no exception. Rising property prices can strain affordability, while state housing mandates may increase competition for land. However, these challenges are mitigated by the city’s proactive planning, such as the inclusionary housing ordinance passed in 2024, which balances development with affordability. Investors who research diligently and partner with local experts can navigate these hurdles effectively.
Conclusion
Costa Mesa stands out as a great place for property investment due to its prime location, thriving rental market, economic strength, and cultural allure. With property values poised for growth, diverse investment options, and a lifestyle that keeps tenants coming back, the city offers a rare blend of opportunity and stability. As of April 9, 2025, the data backs this up: high rental incomes, low vacancy rates, and a robust local economy make Costa Mesa a smart bet for investors. Whether you’re a seasoned real estate mogul or a first-time buyer, this Orange County gem deserves a spot on your radar. Ready to explore the possibilities? Costa Mesa is waiting.
