As New Supply Levels Fall, Revenues Climb in Orange County-Apartment Market Dynamics

From a national level to a neighborhood level, MPF research gives you the best analysis of rental statistics in the nation. In this edition of MPF Apartment Market Dynamics, Jay Parson explores apartment property market trends in the Orange County market.

New supply held back the Orange County apartment market in the past few years. But that changed in 2011, when new supply levels plunged to a two-decade low, helping Orange County achieve strong revenue growth.

Orange County has recorded 10 straight quarters of apartment demand. Supply levels are falling and helping to raise occupancy levels. Vacancies are minimal and rent growth is climbing by 4.9% year-over-year.

Multifamily properties built in the 2000s are up at 6.4%. This is significant since in 2010 they newer apartments were holding things back. However, pricing levels are still below where they were prior to the recession. Since new supply levels are ramping up, we are expecting to see demand slow in the next year.