New Home Sales in Orange County Fall Nearly 20 Percent

Home builders in Orange County saw a nearly one-fifth reduction in new home sales last year compared to 2024.

The county’s 14 largest builders sold 1,785 new homes in 2025, representing a 16 percent drop from 2,133 the year before, the Orange County Business Journal reported, citing its own data. Higher borrowing costs and affordability constraints contributed to the cooling demand, according to the Business Journal.

The slowdown marks a sharp pullback from the pandemic-era boom, when annual sales hovered around 3,400 units between 2021 and 2023. The combination of elevated interest rates, limited supply and a softer economic outlook have thinned the buyer pool and stretched affordability to its limits, home builders told the Business Journal.

“Unfortunately, the market is priced beyond the means of many buyers,” Richard Douglass, president of Trumark Homes’ Southern California division, told the publication. “There are still transactions occurring and buyers paying premium prices for premium products and locales. Meanwhile, more people are priced out, and that poses significant challenges for home sellers.”

Single-family home prices in Orange County jumped 7.7 percent last year compared to 2024, marking the biggest increase of any market in the country, according to a First American Data & Analytics report.

Market leader Lennar maintained its top position in Orange County but still saw sales fall 13 percent to 712 homes. Toll Brothers posted a steeper decline, dropping 30 percent to 185 units. Brookfield Residential Southern California’s sales plummeted roughly 80 percent to just 27 homes, while PulteGroup fell 73 percent to 25. Trumark Homes largely held steady with 82 homes sold last year — down one from 2024 — though it’s still a large difference from the 169 homes sold in 2023. Demand for a certain type of product didn’t appear to have an effect on trends: Overall, attached home sales fell to 888 from 1,169, while detached homes dipped to 897 from 964.

Not all builders took massive hits. The Olson Company nearly doubled sales to 166 homes, while KB Home tripled its volume to 159 units. Risewell Homes increased sales 73 percent to 118.

Builders aren’t retreating, however. Collectively, the top firms grew their local workforce by 5.5 percent to 1,596 employees, signaling a longer-term bet on the region despite near-term softness. Some firms are even positioning for a rebound; City Ventures, which sold just three homes last year, said it controls 539 lots and is ramping up new projects.

— Chris Malone Méndez