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Market Report

Orange County Multifamily Market Report

2025 Investment Forecast

Irvine Development Gains Momentum as
Supply Remains Tight Across the Metro

White-collar job growth aids luxury rental demand. Expectations for accelerated hiring among traditionally office-using firms is poised to drive a higher pace of household formation that strengthens local rental demand for Class A and B units this year. The metro’s median home price-to-income ratio, which is the highest in the nation, will also serve to benefit upperand mid-tier apartment complexes at a time when minimal deliveries are forecasted for the market. Of the rentals slated for completion in 2025, more than 1,000 units are located within the Irvine Business Complex. Home to a large share of the metro’s office-using positions, the area is well positioned to support new highly amenitized multifamily construction. The city’s median household income is among the highest in the metro and local vacancy near the lowest, indicating new supply should be readily absorbed. Looking ahead, the Irvine Business Complex will likely remain the epicenter of development in Orange County after zoning changes near the end of 2024 overruled local objections and permitted up to 15,000 high density residential units to be built here over the next two decades. This is driven by efforts to meet California’s housing mandate, which requires the city to zone for over 23,000 new units by 2029.

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