Home Values in Lake Forest, California — 2026 Market Report
Updated March 2026 | Balanced Market | +1.4% YoY
The median home value in Lake Forest, California is $895,000 as of March 2026, which is above the national median of $400,000. Home values in Lake Forest have increased by 1.4% over the past year and 7.2% over the last five years. With a population of 85,858 and a median household income of $108,250, the price-to-income ratio stands at 8.3x, making Lake Forest affordable for the average household.
Lake Forest Housing Market Conditions
| Metric | Lake Forest | National Avg |
|---|---|---|
| Median Home Value | $895,000 | $400,000 |
| YoY Appreciation | +1.4% | +3.8% |
| 5-Year Appreciation | +7.2% | +22.4% |
| Price per Sq Ft | $679 | $222 |
| Days on Market | 45 days | 45 days |
| Months of Supply | 4.6 | 3.5 |
| List-to-Sale Ratio | 99.3% | 98.5% |
| Monthly Homes Sold | 41 | — |
| Foreclosure Rate | 0.64% | 0.3% |
Home Value Trends in Lake Forest
A homeowner who purchased at the median price of $834,888 five years ago in Lake Forest would have gained approximately $60,112 in equity, representing a 7.2% return on investment. Over the past year alone, the typical homeowner gained $12,357 in home equity.
Affordability in Lake Forest, CA
With a median household income of $108,250 and a median home price of $895,000, the price-to-income ratio in Lake Forest is 8.3x. A ratio below 3x is generally considered affordable, while above 5x indicates significant affordability challenges. The average monthly rent of $4,752 compared to estimated monthly ownership costs of $4,818 gives a rent-vs-buy ratio of 1.01. In Lake Forest, buying is currently competitive with renting when factoring in equity accumulation.
Property Taxes in Lake Forest
The effective property tax rate in California is 0.76%. On a home valued at $895,000, the estimated annual property tax bill is $6,802, or approximately $567/month. Property taxes are an important factor in the total cost of homeownership and can significantly impact affordability. The cost of living index in Lake Forest is 152.5 (100 = national average), indicating living costs are above the national average.
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Open Mortgage CalculatorFrequently Asked Questions
What is the median home value in Lake Forest, CA?
The median home value in Lake Forest, California is $895,000 as of March 2026. Home values have changed +1.4% over the past year, with a 5-year appreciation of 7.2%.
Is Lake Forest a buyer's or seller's market?
Lake Forest is currently a balanced market with 4.6 months of housing supply. Homes spend an average of 45 days on market, and the list-to-sale price ratio is 99.3%. Supply and demand are relatively balanced.
Are home values going up in Lake Forest?
Yes, home values in Lake Forest have increased by 1.4% over the past year. The 5-year appreciation rate is 7.2%, meaning a home worth $834,888 five years ago is now worth $895,000.
Is it better to rent or buy in Lake Forest?
The average monthly rent in Lake Forest is $4,752, while estimated monthly homeownership costs are approximately $4,818. The price-to-rent ratio is 15.7. Based on current conditions, buying may be more cost-effective than renting in this market.
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Disclaimer: Home value data for Lake Forest, California is based on publicly available market data and estimates. Actual home values may vary based on property condition, location within the city, and current market conditions. Data is updated regularly but may not reflect the most recent transactions. Last updated: March 2026.