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Market Report

Orange County Multifamily Market Report

2024 Investment Forecast

Metro Stands Out in California as Santa
Ana Rent Control Hinges on Voters

Broad demand supports widespread rent growth. Orange County has held the title of California’s tightest major rental market for the past three years. The metro will retain this accolade during 2024, as significant homeownership barriers and record numbers of traditional office-using, retail trade and food service positions facilitate strong demand across property tiers. In the Class A sector, developers are responding to a vacancy rate more than 100 basis points below its long-term mean of 4.7 percent by delivering upward of 3,000 units for the first time in six years. Completions, however, are centered in the Irvine Business Complex neighborhood, which appears warranted considering the city’s low-2 percent vacancy at the onset of 2024. The relatively moderate volume of rentals added across the rest of the metro bodes well for Class A demand in areas like Anaheim and Costa Mesa. Concurrently, record-high Class A rent will require many households to occupy Class B and C units, maintaining some of the nation’s tightest conditions in both segments.

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