Orange County Q2 Multifamily Market Report: Despite the Shutdown, Apartment Vacancy Trends Lower
Highlights:
- While each market is dealing with individual challenges brought on by the global pandemic, the Orange County multifamily market has posted relatively steady performance through the first half of 2020. The vacancy rate declined through the first half, while rents recorded a minor downtick in the second quarter but remained positive annually.
- Vacancy held steady at 3.6 percent in the second quarter; the rate has decreased 60 basis points year over year. Vacancy in Class B and Class C units averages 2.8 percent.
- Current asking rents are $1,998 per month, 1.5 percent higher than one year earlier. Annual rent growth has been softening since peaking in the second quarter of 2018 at 5.3 percent.
- The investment market in Orange County produced mixed results through the first half of the year. Sales velocity is lagging considerably from 2019 levels; prices are slightly higher, and cap rates have remained near 4 percent.
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