Highest rental rates in Orange County ($4,417/mo average ADU rent). Premium coastal market where strong rental income justifies higher construction costs and longer permitting timelines.
Laguna Beach is a prestigious artist colony and coastal city that commands the highest ADU rental rates in Orange County — averaging $4,417 per month. The most critical factor for ADU construction here is that the majority of the city falls within the California Coastal Zone, requiring a Coastal Development Permit (CDP) in addition to standard building permits. The city adopted a March 2025 urgency ordinance to bring its ADU regulations into compliance with state law. Design review is mandatory for all new construction to ensure aesthetic conformity with the community's artistic character. Hillside properties face additional grading restrictions and geotechnical requirements. Despite these complexities, Laguna Beach's premium rental market makes ADU investment here exceptionally rewarding for those willing to navigate the process.
Nearly all properties in Laguna Beach are within the Coastal Zone. Contact Community Development at (949) 497-0712 to confirm. Coastal Zone properties require a Coastal Development Permit (CDP), which adds 4–8+ weeks to your timeline.
All new ADU construction in Laguna Beach requires design review to ensure aesthetic conformity with the community's artistic and architectural character. Prepare detailed elevations, material samples, and color selections.
For Coastal Zone properties, prepare and submit your CDP application. Include environmental documentation, view analysis if on a hillside, and any required geotechnical reports. This is a separate review from the building permit.
Submit complete architectural plans including site plan, floor plans, elevations, structural engineering, MEP, and Title 24 energy calculations. Plans must reflect design review conditions and CDP requirements.
Once approved, pull your building permit and begin construction. Laguna Beach expects high-quality construction — invest in premium materials and finishes that match the community's artistic character.
Pass final inspection and receive your Certificate of Occupancy. Your ADU enters Orange County's highest-rent market — average ADU rents of $4,417/mo make the investment worthwhile.