— By Shane Shafer of Northmarq —
The Orange County apartment market is one of the most dynamic and sought-after real estate sectors in Southern California. Known for its beautiful beaches, high quality of life, and proximity to major job centers like Los Angeles and San Diego, Orange County has become a prime location for renters. As of 2025, the apartment market in the area is marked by a blend of high demand, rising rents, and an evolving landscape shaped by both economic and demographic trends.
The demand for apartments in Orange County has been consistently strong in recent years. This is driven by both local and regional factors. The county’s thriving economy — bolstered by sectors like technology, healthcare, tourism and finance — provides ample job opportunities, making it an attractive place for workers from across the state and beyond. This influx of talent, combined with a relatively low housing supply, has kept rental demand high, particularly in areas near major employment hubs, such as Irvine, Costa Mesa and Anaheim.
The region’s high desirability keeps apartment vacancies generally low, with occupancy rates often nearing or surpassing 95 percent. New construction, while robust, has not fully kept pace with the demand for rental units. This has created intense competition for available apartments, especially in desirable neighborhoods. The imbalance between supply and demand has been a primary driver of rising rental prices.
One of the most notable trends in the Orange County apartment market is the continuous and consistent rise in rental prices. Over the past several years, rents have steadily increased across many segments of the market, from affordable apartments to luxury units. As of early 2025, the average monthly rent for an apartment in Orange County is estimated to be more than $2,400, a significant increase compared to just a few years ago. The price surge is particularly noticeable in high-demand areas like Irvine, Newport Beach and Costa Mesa where rents can easily exceed $3,000 per month for one-bedroom units. These fundamentals consistently keep Orange County on most investors’ top 10 lists.
As the apartment market continues to evolve, renters’ preferences have also shifted. Renters in Orange County are increasingly looking for more than just a place to live — they want amenities that enhance their quality of life. Modern amenities like fitness centers, coworking spaces and outdoor communal areas have become essential selling points for apartment buildings.
The pandemic also created a lasting impact on the market. Many renters shifted their priorities toward apartments that offer more space for remote work. With the rise of hybrid and fully remote work models, renters are now placing greater emphasis on apartment layouts that accommodate home offices and larger living spaces. This trend is particularly evident in areas like Irvine, south Orange County and Anaheim where newer, larger developments offer a variety of floor plans catering to those seeking flexibility in their living arrangements.
In terms of luxury apartments (especially those in coastal and high-demand urban areas), many are equipped with top-tier amenities and high-end finishes. These units are appealing to higher-income renters, often those employed in tech, finance and professional sectors. Naturally, they can command premium rents. This market will continue to show strength and growth as more jobs are created in AI and the healthcare sectors.
On the flipside, workforce housing markets are undersupplied, and demand far outweighs availability. This pressure and additional demand will allow for rents to increase in these markets as well. Most in demand will be units with large living spaces, top-tier amenities and high-end finishes.
The current Orange County apartment market is defined by a blend of strong demand, rising rents, shifting consumer preferences and continued challenges to homeownership, all of which will add more renters to the pool of an undersupplied market.
These characteristics will allow Orange County to continue to produce great fundamentals for investors, maintaining its status as one of the most desirable markets. Those looking for flight-to-quality assets and location can achieve both in Orange County where they can expect to receive long-term, consistent returns.
— By Shane Shafer, Managing Director, Southern California, Northmarq. This article was originally published in the February 2025 issue of Western Real Estate Business.