Orange County Multifamily Market Report

Wave of Class A deliveries approach. Orange County is home to the lowest luxury tier vacancy among major U.S. apartment markets, despite entering the second half of this year with an average Class A rent of roughly $3,000 per month. The metro’s sizable tally of traditionally office-using positions, nearly 30 percent of the total workforce, and its high single-family home prices support this standing. While household incomes often surpass the $100,000 per year threshold here, many higher-earning families and individuals face steep barriers to homeownership, as over half of the metro’s single-family homes are priced above $1 million. Recent Class A performance reflects this. Spanning the past five years ending in June, nearly 13,600 units were delivered across the metro. Concurrently, luxury vacancy fell 10 basis points to 4.1 percent. Developers have responded. As of August, more than 5,500 units were underway, upcoming deliveries that will test local capacity for Class A rentals.