— By Cameron Irons, Executive Director, SVN Vanguard —
The multifamily real estate market in Orange County continues to be one of the most attractive and profitable in the country. The area’s strong economy, affluent population and abundance of job opportunities have made it a popular destination for people looking for a place to live. As a result, the demand for housing in Orange County has remained high. Developers are responding by building new multifamily and mixed-use developments.
There are several highly active companies developing new multifamily projects in Orange County. Projects such as Metropolis by the Irvine Company and Park and Paseo by Broadstone are nestled among large office/industrial parks and feature thousands of residential units, in addition to retail and commercial space. They are designed to be hubs for work, play and living, offering residents a wide range of amenities. Lennar Homes, KB Homes and Meritage Homes have similar projects in development in every city throughout the county.
Despite the high prices of these properties, the Orange County multifamily market continues to thrive. The area has seen a surge in the number of renters in recent years, which has put pressure on the available housing supply. This has driven up rental prices, making it difficult for many people to afford a place to live. To address this issue, most of these developments will include hundreds of affordable housing options and be in prime Orange County locations.
The impact of these new developments on their surrounding neighborhoods has been significant. East End, the Santora and the Station at Santa Ana are not only providing new housing options, but generating economic activity by creating new jobs and attracting new businesses to the area. For example, the East End development is expected to create more than 1,000 new jobs during its construction phase, as well as hundreds of additional jobs once it’s completed. The overarching trend throughout all these projects is to create vibrant, self-contained communities with large, open, safe public spaces that feature an abundance of inclusive facilities for their residents.
The vacancy rates in Orange County have remained relatively low. They currently hover around 3 percent across all sectors, including large and small, old and new. This reflects the strong demand, as well as the high quality of life that Orange County offers. With more new developments on the horizon, it’s likely the vacancy rate will stay low. The market is poised for continued growth and success in the years to come despite looming economic challenges. Whether you’re an investor or a property owner there has never been a better time to be a part of the multifamily real estate market in Orange County.