Squatters’ homes have become among the most popular rentals in a California state park

Driving the Pacific Coast Highway between the affluent Southern California beach towns of Corona del Mar and Laguna Beach, there’s a stretch of coastline that’s noticeably sparse with a resort or rows of million-dollar homes blocking an ocean view.

3.2 miles of open beach and 2,400 acres of backwaters make up Crystal Cove State Park, one of the last remaining examples of a natural shoreline in Orange County.

More than two million people visit its white-sand beach, campgrounds or trails each year.

The park is also home to a 12.3-acre historic district featuring 46 cottages built about 100 years ago. “The cottages themselves were built in the 1920s and 1930s by squatters,” said Laura Davick, founder of the nonprofit Crystal Cove Conservancy, which was founded in 1999 to save the historic cottages. “It was basically during the Depression Era and also during the Prohibition Era, that families, as settlers, started building these little one-room cabins in Crystal Cove and word got out, and so more and more people were coming down.”

Located directly on the beach, more than half of the cottages have been carefully restored and are used for overnight stays. They provide rentals to 24,000 people annually. Eight additional newly restored rental units are expected to be ready for rent this month.

The small, colorful dwellings with rooftops overlooking the ocean, frozen over time, are unique and certainly represent the original owners who built them. The low rental cost (as low as $49 for a single room or from $222 for a single house) and location make it highly desirable, with an occupancy rate of up to 98% year-round.

The beach’s popularity began in 1917, when it attracted silent filmmakers looking for a Polynesian setting. Actors would have parties on the beach, “drinking,” Devick recalls from an interview with a man who lived there in 1928 when he was 12 years old. There were also stories of rum vendors unloading liquor here during Prohibition, because it was so far away at the time, she said.

In the summer, beachgoers in tents populated its beach. After that, people began building more permanent shelters, the origin of some of the current huts, on the beach.

Three generations of the Duffick family lived in Crystal Cove, from 1921 to 2001. Her parents met there as teenagers while camping in tents. After her parents married, they acquired Hut No. 2 when Devik was one year old.

Growing up, Davick said she often found Prohibition-era liquor bottles washed up on shore. Her favorite bottle in her collection is a brown, guitar-shaped bottle that says, “Sale or reuse of this bottle is prohibited by federal law.”

The land was owned by Irvine, and in 1940, it sent a letter to all squatters. “If you wanted to move your cabin, you could, but if you didn’t, it officially became their property, and that’s when the rental system started,” Davik said. Those who remained were able to rent the property to continue living there for decades.

Crystal Cove became a state park in 1979, when it was purchased from the Irvine Company. “At $32 million, this operation was, at the time, the most expensive state parks acquisition in California history,” Scott Kibbe, state parks superintendent for California State Parks, explained to SFGATE in an email.

In 1997, the state signed a 60-year concession contract with private developers, who wanted to turn the bungalows into a luxury resort. However, conservation groups bought the contract to prevent this from happening. In 2001, all of the tenants were evicted by the state, including Devick.

Instead of a luxury resort, the cottages have been restored in stages, maintaining their original style. He began working on the cottages in 2003, and had the first overnight guests in the historic district in 2006. That’s also when Beachcomber Restaurant, a restored cottage, opened in the park.

Since then, Crystal Cove Conservancy and the state park have been working together to manage the highly desirable shoreline. “Crystal Cove State Park’s combination of historical significance, scenic beauty, ecological diversity, educational opportunities and recreational experiences make it stand out as a truly unique gem among California state parks,” Kibbey said.