Del Webb is selling in Rancho Mission Viejo the Vida project, 62 one-and-two-story “active adult” homes for 55-plus buyers ranging from 1,827-to-2,476 square feet. Priced from the $700,000s. (Courtesy: Rancho Mission Viejo)

At Rancho Mission Viejo, Meritage Homes is selling Modena, 118 paired homes ranging from 1,479-to-1,962 square feet. Priced from the $500,000s. (Courtesy: Rancho Mission Viejo)

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Del Webb is also offering in Rancho Mission Viejo “Vida” — 62 one-and-two-story homes for 55-plus buyers ranging from 1,279-to-2,006 square feet. Priced from the $600,000s. (Courtesy: Rancho Mission Viejo)



Is more modestly priced housing suddenly chic in Orange County?

Now when we talk “affordable” what constitutes a “bargain” can sound silly. But it’s worth noting three new neighborhoods with 242 residences are opening for sale at Rancho Mission Viejo in South County. Their stated starting prices are at or below $700,000 — or roughly what a mid-priced Orange County home is going for.

On Sunday, Oct. 22, these new-home projects open for sale in the NorthWalk community …

Modena: From Meritage Homes, 118 paired homes ranging from 1,479 to 1,962 square feet. Priced from the $500,000s.

Vida: From Del Webb, 62 one- and two-story homes for 55-plus buyers ranging from 1,279 to 2,006 square feet. Priced from the $600,000s.

Alma: Also from Del Webb, 62 one- and two-story “active adult” homes for 55-plus buyers ranging from 1,827-to-2,476 square feet. Priced from the $700,000s.

At Rancho Mission Viejo as well, New Home Co. later this year will offer 10 townhomes — yes, they’re 700-square-foot — starting at roughly $350,000.

Look, I won’t draw too many conclusions from these debuts. Yet I must note these more-affordable homes are hitting the market in a year when sales of new residences seem to have plateaued.

Orange County builders sold 2,811 new residences in 2017’s first nine months. That’s down 35 units from last year’s January-to-September total, but 2016 was developers’ fastest three-quarters selling place since 2006.

It’s no secret that new homes are typically the priciest option on the market. So why are some builders creating products that may lower homebuying affordability challenges?

In 2017’s first nine months, Orange County’s new home pricing ran 23 percent above the overall countywide median selling price. That’s still a steep premium, but it’s down from 40 percent in 2015 and the lowest builder premium in eight years.

Not only are builders competing with each other, the existing home market is bustling, too. So the builders’ slice of overall Orange County sales is flat.

Builders sold 11 percent of the homes purchased in Orange County in this year’s first nine months. That’s the same share as 2016 but off from the recent high of 12 percent in 2014 and the 14 percent average between 1988 and 2007.

Orange County needs all the new housing options it can get, so even freshly built high-end chateaus help a bit. But perhaps a more challenging selling environment is nudging builders to seriously think about offering choices lower down on the price spectrum.