Market Analysis Report: The Rise of Westside Costa Mesa

The Infill Evolution

Westside Costa Mesa is undergoing a systematic transformation, evolving from its mid-century light-industrial roots into a highly walkable, modern live/work residential core. Historically defined by manufacturing plants, boatyards, and airport-adjacent warehouses, the Westside is gentrifying into a creative neighborhood of converted lofts and stylish townhomes. This energetic, urban-suburban atmosphere stands in sharp contrast to the mature, established single-family neighborhoods of Eastside Costa Mesa.

Innovations in Zoning Overlays

The structural foundation of this revitalization was established in April 2006 when the city adopted several key zoning overlays and urban plans. These plans do not change the underlying commercial or industrial zoning of a property. Instead, they act as "overlay zones" that offer developers alternative, high-density residential and mixed-use development standards. These special provisions are activated on a property-by-property basis through the Planning Commission’s approval of a site-specific Master Plan.

The Urban Overlay Breakdown

The city’s Westside Urban Plans cover four distinct areas:

• Mesa West Bluffs Urban Plan: This plan spans 277 acres of light-industrial land south of Victoria Street and west of Superior Avenue, allowing for the construction of live/work units and residential lofts. In 2009, the city updated this plan with strict rules to ensure these properties retain their functional, business-focused layouts. These rules require a minimum of 250 square feet of ground-floor workspace, mandate that two-car tandem garages measure at least 10 feet wide by 38 feet long, and exclude rooftop gardens from building height limits.
• 19 West Urban Plan: Spanning 103 acres concentrated around 19th Street and Superior Boulevard, this framework allows both horizontal and vertical mixed-use properties to bridge the gap between active commercial streets and quiet residential blocks.
• Mesa West Residential Ownership Urban Plan: Covering 238 acres of residential land, this overlay provides development incentives and density bonuses. This allows developers to build modern, three-story ownership properties on older parcels previously restricted to lower-density rental housing.
• SoBECA (South Bristol Entertainment Cultural Arts) Urban Plan: Spanning 39 acres, this plan establishes provisions for eclectic mixed-use developments, creative studios, and retail-residential spaces [64, LU-60].
• Harbor and Newport Boulevard Overlays: These designated commercial corridors allow high-density residential development of up to 40 units per acre, creating a maximum development potential of 1,630 units [LU-60].

The Municipal Screening Requirement

Under Costa Mesa Municipal Code Section 13-28(g)(4), developers proposing mixed-use or high-density residential plans within these urban plan areas must submit a formal screening request. This screening request must be reviewed by the City Council at a public meeting before the developer can submit a formal application. This allows the city to evaluate the visual, structural, and community merits of a project early in the process. A prominent example is Project UMP-21-004, which evaluated a modern eight-unit live/work development on Pomona Avenue.

Eastside vs. Westside Market Dynamics (2026 Data)

A side-by-side comparison of 2026 data shows how the two submarkets differ:

• Median Home Sale Price: The Eastside averages $1.90 Million to $2.28 Million, while the Westside offers a much more accessible entry point at $1.30 Million to $1.32 Million.
• Year-over-Year (YoY) Appreciation: Eastside home prices have stabilized at +0.3%, whereas Westside prices continue to climb at +2.7%.
• Projected Annual Growth (to 2030): The Eastside is projected to grow at a steady 2.0% to 4.0% rate, while the Westside's high-density corridors have an estimated growth upside of 8.0% to 10.0%.
• Average Price Per Square Foot: Eastside homes command $1,067 to $1,250, compared to $861 on the Westside.
• Average Home Size: Eastside homes average 1,828 square feet of living space, while Westside homes average 1,614 square feet.
• Median Lot Size: The Eastside averages a spacious 7,405 square feet. The Westside averages 6,969 square feet citywide, which drops to approximately 5,000 square feet for newly redeveloped parcels.
• Average Days on Market: Both neighborhoods average 42 days on the market. However, prime, well-positioned Westside properties often go pending in just 14 days.
• Percentage of Homes Sold Above List Price: On the Eastside, 33.3% of homes sell over asking, while the Westside sits at 41.9%, indicating an incredibly competitive bidding-war environment.
• Sale-to-List Ratio: The Eastside averages 98.0% to 99.0%, while the Westside averages 101.7%.
• Median Household Income: The Eastside averages over $120,000, compared to approximately $100,000 on the Westside.
• Median Resident Age: The Eastside skews older and family-focused at over 35, whereas the Westside has a median age of 32, attracting a younger demographic of tech professionals, artists, and creative entrepreneurs.
• Development Profile: The Eastside is characterized by established, low-density single-family homes, while the Westside features modern, high-density live/work townhouses, lofts, and Accessory Dwelling Units (ADUs).

Flagship Infill Communities and Resale Trends

The physical success of the Westside's zoning policies is best demonstrated by flagship master-planned communities constructed after 2016, most notably Meritage Homes' 17 West. Located at 699 West 17th Street, this community consists of 135 multi-level townhomes and urban lofts.

These homes feature ground-floor, street-level flex spaces built with higher ceilings and separate exterior doors. This clever design allows consultants, creative professionals, and remote workers to run client-facing businesses directly from their homes without a traditional office commute.

Recent 17 West Transaction History

Resales within 17 West continue to command strong premiums, reflecting the durability of the community's live/work lifestyle:

• 1651 Topanga: A 2,142-square-foot unit with 3 bedrooms and 5 bathrooms sold for $1,750,000 ($817 per square foot).
• 1676 Pomona Avenue: A 2,057-square-foot unit with 4 bedrooms and 4 bathrooms sold for $1,750,000 ($851 per square foot).
• 1675 Grand View: A 2,265-square-foot unit with 2 bedrooms and 5 bathrooms sold for $1,600,000 ($706 per square foot).
• 1687 Grand View: A 2,265-square-foot unit with 3 bedrooms and 3.5 bathrooms is active on the market for $1,745,000 ($770 per square foot).
• 645 W. 17th Street: A 1,904-square-foot end-unit with 3 bedrooms and 3.5 bathrooms is active on the market for $1,298,000 ($682 per square foot).

The Future of Westside Infill

The future of high-density housing on the Westside is highlighted by One Metro West, a massive 15.23-acre redevelopment project located at 1683 Sunflower Avenue. The city council approved a zone change from industrial space to Planned Development Residential High-Density, establishing an exclusive density limit of 80 units per acre.

In late May 2026, the city approved a key amendment to the master plan. To cater to remote-work demands, the amendment reduced the total number of apartments from 1,057 to 957 to increase average unit sizes, added a massive resident workspace and leasing office, and converted the buildings to a podium layout to improve walkability and daylighting.