California’s Working-Class Cities Join the Million-Dollar Club
California Housing Values Continue to Rise, Turning Working-Class Cities into Million-Dollar Communities
When you think of towns with $1-million-plus homes, places like Beverly Hills, San Marino, Newport Beach, and Palos Verdes Estates might come to mind. However, as California housing values keep rising, some cities that were once known for their working-class modesty are now joining the list of communities with median home values exceeding $1 million.
The most recent additions to this list include Placentia, Orange, and Tustin in Orange County, Bonita in San Diego County, and Cerritos and San Gabriel in Los Angeles County. Among these new cities, Bonita and Tustin saw the highest growth rates, with home values jumping nearly 12% in just one year, according to a recent analysis by real estate listing site Zillow.
One resident, Tor Black, 55, has lived in Tustin for the past five years. As a real estate agent, he and his wife, Iris, found their “forever home” in Tustin Meadows, the first planned urban neighborhood in Orange County. The value of their home has skyrocketed from $800,000 at the time of purchase in 2022 to $1.3 million today, marking an increase of over 60%.
Black attributes the rising property values in Tustin to the limited undeveloped land in the area, leading most residents to purchase older homes and renovate them. He notes that many houses are passed down within families, making it challenging for newcomers to find available homes.
Despite the soaring prices, Black appreciates the sense of community in Tustin, describing it as a “family-type place” unlike any other in Orange County. He reflects on his childhood dream of becoming a millionaire, now fulfilled through homeownership in a city where the median home value exceeds $1 million.
California now boasts 210 cities with median home values of at least $1 million, representing a significant portion of the 550 “million-dollar cities” in the U.S. The state added 12 new cities to this list in the past year, with Southern California cities like Tustin and Bonita experiencing remarkable growth rates.
In Bonita, restrictions on new home construction and surging demand have contributed to a 65% increase in home values over the last five years. Residents like Wendy Wilson appreciate the area’s rural charm, with century-old historic homes and limited new housing construction preserving its character.
While affordability remains a concern in cities like Tustin, where the median household income exceeds $100,000, the average home value is about 10 times higher than household earnings. This trend is mirrored in Bonita and across California, where housing affordability continues to be a pressing issue.
Despite challenges like traffic congestion and limited public transportation options, cities like Tustin and neighboring communities benefit from their proximity to job centers and the allure of Southern California living. As Black notes, people continue to idolize the region for its diverse communities, economic opportunities, and desirable lifestyle.