Morro Bay, CA—93442
Real Estate Data & Market Trends
Key Metrics at a Glance
Home Price Trends — Morro Bay, CA
As of Oct '25, the median home price in Morro Bay, CA is $931,000, with a year-over-year change of -2.5%. This indicates that home prices in Morro Bay, CA are decreasing. According to Zillow, the 1-year price projection is 0.7%, suggesting a relatively flat housing market in the next year.
Cost per Home Type
| Home Type | Median Home Value | YoY % Change |
|---|---|---|
All Homes | $931,000 | -2.5% |
| Single Family | $951,000 | -2.5% |
| Condos | $769,000 | -0.3% |
Cost per Home Size
| Home Size | Median Home Value | YoY % Change |
|---|---|---|
1 Bed | $603,000 | -2.4% |
2 Bed | $770,000 | -3.3% |
3 Bed | $1,031,000 | -1.3% |
4 Bed | $1,290,000 | -1.1% |
| 5 Bed | N/A | N/A |
% of Housing Stock
Rental Trends — Morro Bay, CA
As of July '25, Rentcast reports the average rent in Morro Bay, CA is $2,840, with a year-over-year rent change of -11.8%. Per bedroom, the median rent as of July '25 in Morro Bay, CA is studios: $1,500, 1-bedrooms: $2,440, 2-bedrooms: $2,610, 3-bedrooms: $3,530, 4-bedrooms: $4,200. The most common rental property sizes in Morro Bay, CA are 2-bedroom and 1-bedroom, accounting for 46.1% and 25.3% of the rental stock.
| Type | Median Rent | Average Rent |
|---|---|---|
| Average Rent | $2,700 | $2,840 |
| Studio Rent | $1,500 | $1,500 |
| 1 Bed Rent | $2,200 | $2,440 |
| 2 Bed Rent | $2,650 | $2,610 |
| 3 Bed Rent | $3,500 | $3,530 |
| 4 Bed Rent | $4,200 | $4,200 |
% of Rental Stock
Property Listings — Morro Bay, CA
As of Oct '25, Realtor.com reports that the median days on market for a home in Morro Bay, CA is 91. This is a increase of 55.0% from last year, suggesting that homes are sitting on the market longer than last year. The percentage of listed homes with a reduced price is 28.0%, representing a large inventory and a lot of supply pressure on home prices.
| Metric | Zip Code Average | Year over Year % Change |
|---|---|---|
Median Listing Price | $1,270,000 | 26.0% |
Listing Count | 43 | 6.0% |
| Listings as % of Homes | 0.4% | 6.0% |
Days on Market | 91 | 55.0% |
Demographics — Morro Bay, CA
As of the latest ACS Survey released in 2023, Morro Bay, CA has a population of 11,300, which has increased by 3.3% over the past 5 years. Morro Bay, CA is a less popular place for families, as children make up 11.8% of the population. The area has a highly educated workforce, with 45.3% of adult residents holding a bachelor’s degree or higher. There are some residents working remotely, with 14.5% reporting working from home.
| Metric | Latest Census | YoY % Change |
|---|---|---|
Population | 11,300 | 3.3% |
% Under 18 | 11.8% | -18.1% |
% Seniors | 31.5% | 9.4% |
% WFH | 14.5% | 133.9% |
% w/ College Degree | 45.3% | 20.8% |
As of the latest ACS Survey released in 2023, Morro Bay, CA is a predominantly white area, with 77.3% of the population identifying as white. The white population has shrunk by 4.2% in the last 5 years. The second most common race or ethnicity in Morro Bay, CA is hispanic, making up 12.8% of the population. Foreign-born residents account for 6.2% of the population in Morro Bay, CA, and this percentage has decreased by 26.2% as of the ACS Survey 5 years prior, suggesting fewer immigrants are calling the area home.
Race and Ethnicity
| Metric | Latest Census | 5-Year % Change |
|---|---|---|
% White | 77.3% | -4.2% |
% Black | 0.3% | -72.7% |
% Hispanic | 12.8% | -2.3% |
% Asian | 4.8% | 71.4% |
% Foreign Born | 6.2% | -26.2% |
Mortgage and Risk — Morro Bay, CA
According to HUD data as of 2023, there were 96 mortgage originations in Morro Bay, CA, of which 93.0% of loans were conventional mortgages. The average loan-to-value was 45.0%, with 7.0% above 90% LTV (normal). This implies small mortgage risk in Morro Bay, CA. Investor activity is low, as 5.0% of loans were by investors. 20.0% of loans were cash-out refinances, suggesting many homeowners are tapping equity.
Mortgages
| Metric | Zip Code Average |
|---|---|
Total Loan Originations | 96 |
% Conventional Loans | 93.0% |
% Government Loans | 7.0% |
% Investor Loans | 5.0% |
% Second Loans | 14.0% |
% Cash Out Refinance | 20.0% |
Loan Activity
Rentals and Section 8 — Morro Bay, CA
As of 2024, the percent of homes in Morro Bay, CA under the Section 8 program is 7.0%. This is considered low, suggesting that the neighborhood is sparsely composed of Section 8 homes. Section 8 opportunity is good when HUD pays more than market rent. In Morro Bay, CA, none of the tracked home sizes currently have HUD payment amounts above market rent, suggesting limited Section 8 opportunity.
Section 8 Market Size
Total Units under HUD | 153 |
Total Units Section 8 | 153 |
% Rentals under Section 8 | 7.0% |
% Occupied Section 8 | 88.0% |
Section 8 Opportunity
| Home Size | HUD Premium | Market Rent | Max HUD Rent |
|---|---|---|---|
| 1 Bedroom | -$390 | $2,200 | $1,810 |
| 2 Bedroom | -$270 | $2,650 | $2,380 |
| 3 Bedroom | -$320 | $3,500 | $3,180 |
| 4 Bedroom | -$600 | $4,200 | $3,600 |
Affordability — Morro Bay, CA
Home Price to Income Ratio
| Metric | Zip Code Average |
|---|---|
| Home Price to Income Ratio | 10.1 |
| Median Home Price | $931,000 |
| Median Household Income | $92,200 |