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Market Report

Orange County Multifamily Market Report

2Q 2023

Nation’s Tightest Luxury Market Awaits
Supply Relief as Developers Get Creative

Pipeline refill warranted. Orange County entered the second quarter with the lowest Class A vacancy among major U.S. markets and a share of the West Coast’s tightest overall availability. These rankings will be tested as developers complete nearly 4,000 units by the end of this year, the largest annual tally since 2017. Fortunately, several demand drivers will limit the impact of these supply additions. As of April, the metro’s median home price neared $1.2 million, reducing housing options for a high percentage of residents, including many households that bring in more than $100,000 annually. Higher earners unable to purchase a home will funnel into the luxury renter pool. Still, upcoming deliveries are expected to raise Class A vacancy and hinder upper-tier rent growth, impacting the market’s overall performance prior to the addition of at least 2,800 units next year. 
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