35 reasons why Orange County is so expensive

I was planning on being in Orange County for just a few years.

It was September 1986, and I was a new employee at the Orange County Register. Who knew this collection of towns and its hometown newspaper would be home ever since?

The journalism constant in my 35 years has been concerns about the high cost of housing. I’ve explored the debate in numerous ways, from the data to the politics and the anecdotes.

It may simply be a story of too much success. My trusty spreadsheet tells me over three-plus decades, Orange County created 1.2% of the nation’s jobs but just 0.7% of new housing.

That mismatch adds up to local home values growing more than five-fold, according to one index. Ponder my first O.C. home — a Santa Ana condo. I paid $99,000 in 1986. Today, it’s valued at a half-million bucks.

So indulge me as I try another way to tell this tale: 35 slices of local life that may explain why 3.2 million people — a larger flock than 20 other states and up 1 million since my arrival — pay the “Orange County premium” to live here.

35. Toll roads: For some, the costs of a toll road trip are too high. For others, the concept is bothersome. But it’s hard to imagine local driving, especially in South County, without these additional travel options.

34. Taco giants: Local business wizardry brought Mexican fare to the masses. Few foodies dabble in Taco Bell and Del Taco, but if housing costs clobber your wallet, their menus offer affordable meals.

33. 4th St. Santa Ana: This New York City native enjoys the urban feel of the evolving dining and entertainment district. And it’s not just nightlife. The city is getting upscale housing in its downtown neighborhoods.

32. Anaheim Stadium: Tear it down for affordable housing development? Nope, the city chose to sell it to the baseball team’s owner for a ballpark makeover and a “mixed-use” project. State regulators question the deal.

31. Botox: The wrinkle remedy developed in Irvine by Allergan also treats some serious medical conditions. It also symbolizes an odd focus on our vanity. In a place with lofty home prices, looks can be overly important.

30. Nixon Library: This Yorba Linda landmark honors a disgraced former president. His administration, sadly, fought efforts to desegregate housing — a legacy that still divides economic opportunity.

29. Downtown Fullerton: The city’s meeting spot offers a pleasant change from any mall. With a train station nearby, it’s surprising that more housing — especially high-rises — hasn’t emerged in this neighborhood.

28. Irvine’s noodle factory: The steam rising from Maruchan’s ramen plant near the Spectrum reminds me manufacturing still accounts for 1-in-10 of local jobs, usually with decent wages.

27. Mortgage making: Local innovation transformed home lending, not always for the better. Still, lenders’ ability to qualify a surprisingly large slice of the population is a factor in why housing is so costly.

26. Strand Beach: Its public paths to the ocean run right next to ridiculously opulent homes. It’s a display of the power of California’s beach access laws: You don’t have to be a gazillionaire to enjoy the world’s greatest coastline.

25. Master-planned communities: Love them or hate ’em, they’re Orange County’s look. Many enjoy life in what amounts to a pre-packaged community. For those who can’t stand uniformity, you have options. Like Los Angeles.

24. Communication chips: O.C. know-how built tiny radio semiconductors that go inside everything from fax machines to dial-up modems to today’s smartphones. Fortunes — think of Broadcom, for one — were built with those smarts. 

23. Downtown Brea: Unlike nearby Fullerton, this unfolding urban hub feels more engineered than organic. Yet it serves an important O.C. lesson on how relatively denser development offers house hunters more lifestyle choices.

22. The redwoods: Typical O.C. — import an out-of-town flavor. Carbon Canyon Creek Nature Trail brings you to a 3-acre site filled with Coastal Redwoods, the massive trees that famously adorn northern California. How did they get here? Transplanted in 1975!

21. NIMBYs: Ah, the contorted logic of folks who live in relatively new communities … complaining about additional development nearby. Selfish thinking is part of why local home values since 1986 have appreciated annually at an 11% faster pace than the nation.

20. Carl’s Jr.: The founding family of this purveyor of drive-thru burger decadency, the Karchers, were a cog in the post-Word War II fast-food revolution. This century, their Six Dollar Burger was a pioneering concept of higher-quality, quick-serve food.

19. Soup shops: It took Orange County to teach me just how satisfying a well-crafted bowl of hot broth could be. First, it was pho restaurants with soups amazing for sheer simplicity. Now, ramen is the craze — a far more complex taste.

18. The date shake shack: The best cheap date is just off Coast Highway at Crystal Cove. Since 1946, there has been no better place to watch a Pacific sunset and sip on a milkshake.

17. The Orange Circle: This college town and its picturesque traffic roundabout are full of intriguing dining spots — and a cool annual street fair. The neighborhood, with its strict architectural controls, keeps an old-school feeling alive.

16. UC Irvine: It may not have a traditional campus feel — nor the broader community connection once envisioned — but the innovation emanating here helps power the local economy.

15. Great Park: This curious mix of sports parks and housing is a better result than what others proposed — putting an international airport on the old military airbase.

14. John Wayne Airport: It’s no longer the quick in and out it was when I arrived in 1986, but the airport is still a sanely-sized place to catch a plane. Sadly, airfares tend to be higher than elsewhere in the region.

13. Pacific Amphitheater: There are few more enjoyable ways to spend a summer evening than a trip to the Orange County Fair. Rides, fattening food and some quality music at the fairground’s amphitheater.

12. Taco stands: Everybody’s got a favorite joint and beloved menu item. The huge number of choices — from mom and pops to small chains to taco trucks — creates a cultural and dining bonanza.

11. Honda Center: This was a classic build-it-and-they-will-come real estate story. The city of Anaheim built the indoor arena without a major tenant in hand. What the city got — Ducks hockey — made me a season ticket holder since their first game in 1993.

10. South Coast Plaza: The Segerstrom family all-but willed its Costa Mesa mall into a high-fashion staple that draws shoppers from around the globe. Even if you don’t know one luxury brand from another, the people-watching is worth a few visits.

9. Santiago Canyon Road: I live at the southern end of this magnificent 13 miles. In a county known for soul-crunching freeways, this is a refreshing spin along a two-lane road through the foothills. It’s as great for the eyes as it is for one’s psyche.

8. Main Beach Laguna: Essentially, this spot is a living postcard. The signature lifeguard tower is perfectly framed by a curving shoreline at a beach filled with locals, tourists, surfers and volleyball players. Its proximity makes any O.C. residence more valuable.

7. Little Saigon: The commercial hub of a vibrant Vietnamese community is a place to absorb the tastes and products of the culture. It’s also a symbol of a county willing to accept refugees from another war that our nation shouldn’t have fought.

6. Cars: Wonder how people can afford to live here? Just look at what’s being driven. Our love affair with automobiles is legendary, from collectibles to high-end brands to sports cars. The price tags reveal how much money rides around town.

5. Disneyland: Walt Disney’s dream amusement park put the county on the world map. Just say “Orange County, it’s where Disneyland is.” This prestige helps drive foreign interest in local real estate, too.

4. Employment: Real estate’s three magic words: “jobs, jobs, jobs.” The county added 650,000 jobs since 1986, a 64% growth rate that exceeds the nation’s 52%. The work produces a median household income of $90,000 vs. the nation’s $63,000. Now you know why home prices are what they are.

3. 34 cities: Our local political structure is basically a compilation of small towns. That’s great for a sense of local control and contrasting community aesthetics. But for any major policy issue — housing costs are a great example — this set-up makes it nearly impossible to get things done.

2. The weather: Yes, 75 degrees and sunny can get boring. But rarely donning rain gear creates quite the lifestyle. Climate may not be a very cerebral economic factor, but nearly perfect weather — with few bugs — is something people will pay up for.

1. The melting pot: We are better for our differing backgrounds, lifestyles and cultures. The Census Bureau estimates that in Orange County there’s a 69% chance that two random residents are of different ethnicities. The nation is at 66%. And if O.C. was a state, only California and Hawaii would be more diverse.

Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com

Source: Orange County Register