Artists in Laguna Beach will keep some affordable housing in a town with a long history of art – home to a host of museums and galleries.

After years of considering artist housing, Laguna Beach City Council members approved a $8 million loan to buy two properties in Laguna Canyon, near a major wilderness park in the area.

The loan will be provided to the Laguna Beach Community Land Trust – a non-profit organization that was established in March of 2024 to acquire land in an effort to keep it affordable, and will operate at 4% interest for a five-year term.

The properties, located at 2307 and 2535 Laguna Canyon Road, provide 25 live-work units for artists in the area.

According to a Dec. 9 staff report, the properties are “two of the last significant artist-oriented properties remaining in the City.”

City staff also noted that the properties were on track to hit the private market, which could’ve seen the 25 affordable housing units redeveloped. 

Early in its history, Laguna Beach was established as an art colony, being home to famous art festivals, like the Sawdust Festival which showcases 180 Laguna Beach-based artists’ work.

“You think of the Plein Air Painters and how they, essentially, were inspired by the natural beauty of Laguna Beach and then built a community around that,” Councilmember Alex Rounaghi said at a Dec. 9 meeting. 

“You can’t be an arts colony if you don’t have artists living there.”

At last week’s meeting, city officials said rent would likely see an increase, with a 25% jump being needed to cover the net operating income.

City council members also approved a one-time grant of $75,000 for the Laguna Beach Community Land Trust to cover closing costs.

The discussion surrounding purchasing the properties started at the end of 2024 after it was announced that they would go up for sale, which could lead to redevelopment if purchased privately.

Though the discussion for these specific properties was sparked in 2024, Laguna Beach has looked to support housing for seniors and artists since 2023.

[Read: Laguna Beach to Take a New Look at Affordable Housing for Artists]

In January of 2025, city officials began the process of purchasing the property, establishing the Community Land Trust in the process.

Laguna Beach isn’t the only city implementing a trust to bolster affordable housing, with Anaheim introducing their own housing trust in 2024, supported by $15 million from Disney in exchange for approving a Disneyland expansion. 

[Read: Two More OC Cities Create Housing Trusts; Are They Effective?]

Affordable Housing in one of OC’s Costliest Cities

Laguna Beach’s property purchase comes as the city grapples with state housing mandates, which calls on municipalities to zone for a certain number of affordable housing units. 

Between 2021-2029, the county has been mandated to provide over 180,000 new housing units, with 75,000 designated for low- and very-low income households.

According to the housing element, Laguna Beach must provide 394 affordable units, with 118 being designated for very-low income households and 80 for low-income.

In 2025, the median income for a four-person household in Orange County was $136,600, with low-income being identified as making under $135,350 and very-low being under $84,600, according to income limits from the state Housing and Community Development.

At a March 2025 meeting, it was reported that of the 340 units permitted, none were very-low or low-income serving.

[Read: Laguna Beach Struggles to Build Low-Income Housing]

According to Laguna Beach’s 2024 housing element, almost 20% of the city lives within the low- to very-low income range.

Additionally, Laguna Beach is one of the most expensive areas in Orange County, with median monthly rent in 2018 reaching almost $450 more than the county median, and owner-occupied properties being, on average, over 250% higher than the county median, at $1,771,600, according to the housing element.