Huntington Beach
Investment Analysis

Huntington Beach, CA
Investor Report

Comprehensive real estate investment analysis with cap rates, rental yields, and risk assessment.

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41
Investment Score
Rent
Cap Rate (Est.)
1.3%
Gross Yield
2.1%
P/R Ratio
38.5x
YoY Growth
+2.1%
Median Home Price
$1,285,000
Average Rent (1BR)
$2,252/mo
Median Income
$120,231
Population
192,151

Investment Breakdown

0
Value Score
71
Growth Score
81
Safety Score
35
Afford Score

Huntington Beach has a price-to-rent ratio of 38.5x, which indicates renting is more favorable than buying.

The estimated cap rate of 1.3% is below average, typical of appreciation-focused markets.

Year-over-year price growth of +2.1% indicates stable market conditions.

Rental Cash Flow Analysis

Monthly Income

Gross Rent $2,252
Annual Gross $27,024

Est. Monthly Expenses

Property Tax (~1.5%) -$1,606
Insurance (~0.5%) -$535
Maintenance (~1%) -$1,071
Est. Net Cash Flow -$961/mo

Price Forecast 2026โ€“2028

๐Ÿ”ฎ Huntington Beach Price Forecast 2026โ€“2028

Based on 5-year Zillow ZHVI trend analysis ยท Statistical projection
๐Ÿ“ˆ Upward Trend
PROJECTEDNOW$1M2027$1Mโ–ฒ 8.9%2028$2Mโ–ฒ 15.1%20232024Now
$2M$1M
Current
$1M
2026
Projected
$1M
โ†‘ 8.9% by 2027
Projected
$2M
โ†‘ 15.1% by 2028
5yr CAGR:+7.9%
Confidence:High
Rยฒ:0.93
โ–ผ

Looking at the Huntington Beach housing market forecast through 2028, the data paints a picture of a market that is cooling from a torrid pace but far from collapsing. The median home price sits at $1,304,494, and while the recent YoY price change has slowed to just 1.9%, the five-year CAGR of 8.0% underscores the powerful equity gains for long-term holders. Days on market remain incredibly tight at 20, signaling that well-priced inventory is still absorbed quickly despite a more cautious buyer pool. The core tension in Huntington Beach remains affordability; the price-to-rent ratio of 42.9x is nearly double the national average, heavily skewing the verdict toward renting for those not already entrenched in the market.

For anyone asking if Huntington Beach home prices will drop, the answer is nuanced: significant declines are unlikely barring a major economic shock. The local economy, anchored by aerospace, tech, and tourism, provides a stable employment floor, but the regionโ€™s growth is tempered by strict coastal development limits and high construction costs. Affordability constraints are the primary headwind; as rates remain elevated, the pool of buyers who can service a mortgage on a $1.3M+ property shrinks, naturally capping appreciation. The market temperature of 69/100 and a B risk grade suggest a balanced environment rather than a fire sale, but the days of double-digit annual gains are likely over.

For the Huntington Beach real estate Huntington Beach 2027 outlook, I expect a period of stabilization and modest single-digit appreciation. The 5-year price range from $882,931 to the current median shows the floor is well-established, and the coastal scarcity protects downside risk better than inland markets. However, with median rent at $2,252/mo and the buy/rent verdict favoring renting, we may see increased demand from high-income renters, keeping rental yields compressed. The forecast suggests a 2-4% annual appreciation through 2028, driven by persistent scarcity and lifestyle demand, rather than speculative fervor. Investors should prioritize cash flow over rapid appreciation, while buyers should focus on long-term hold strategies.

Projected Cap Rate (2027)
1.2%
5yr CAGR
+7.9%

Job Market

Unemployment 5.2%
National avg: 3.7%
Job Growth (YoY) +1.5%

Healthcare

78
Score
Good

Risk Factors

Overvalued Market

Market Activity

Source: Redfin ยท 2026-01-31
Sale-to-List 99.6%
Months Supply 2.3
Price Drops 23%
Gone in 2 Wks 44%

Market Position

Affordability Average
Safety Very Safe

ROI Projector Estimate your total return

Adjust the sliders to model different investment scenarios for Huntington Beach.

Total ROI
-123%
on $257,000 invested
Annual ROI
NaN%
compounded
Total Return
-$315,849
appreciation + cashflow
Mo. Cash Flow
-$7,775
year 1 estimate
Equity Growth Over 5 Years
Y1294kY2333kY3372kY4413kY5456k
Appreciation
$138,619
Cash Flow
-$454,468
Final Equity
$455,861

* Estimates based on 2.1% annual appreciation, 3% rent growth, 5% vacancy. Does not include closing costs, tax benefits, or capital gains tax. For illustrative purposes only.

Rental Investment Calculator Estimate your monthly cashflow

Rental Income Estimator

Pre-filled for Huntington Beach

Property

Purchase Price$1,285,000
Monthly Rent$2,252
Down Payment20%

Financing

Interest Rate6.5%

Expenses

Property Tax1.2%
Insurance (Annual)$1,500
Maintenance Reserve1%
Vacancy Rate5%
Property Management0%
HOA (Monthly)$0
-$6,839
Monthly Cash Flow
-$82,069/ year
-31.9%
Cash-on-Cash
-0.3%
Cap Rate

Monthly Breakdown

+ Rental Income$2,252
โˆ’ Mortgage (P&I)$6,498
โˆ’ Property Tax$1,285
โˆ’ Insurance$125
โˆ’ Maintenance$1,071
โˆ’ Vacancy Loss$113
= Net Cash Flow-$6,839

Investment Summary

Down Payment
$257,000
Loan Amount
$1,028,000
Total Monthly Expenses
$9,091
Gross Yield
2.1%

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investment decisions should be made after consulting with qualified professionals. Data sources include Zillow, Census Bureau, and BLS. Cap rates and yields are estimates based on available data.

Last updated: March 2026