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Apartment Construction Continues; Supply Still Low

ORANGE COUNTY, CA-Industry experts say the need for affordable, multifamily housing is still outpacing new construction. That's because few large complexes are being built.

By Joel Cone | Updated on March 25, 2001

ORANGE COUNTY, CA-Under normal circumstances a slowing economy or interest rate cuts could cause multifamily vacancy rates to escalate. While both are present as the end of the first quarter approaches, finding available and affordable multifamily housing anywhere in the county remains tough for potential tenants. Occupancy rates are 95% or higher, and rents increased 11.4% last year, according to a report by M/PF Research in Carrollton, TX.

Dick Sim, chairman of the Investment Properties Group for Newport Beach-based Irvine Co., said last month that his company was set to deliver 1,633 units by this summer, with at total 1,184 of those units in Irvine in two projects. One project, the Oak Glen apartment complex was scheduled to open this month, and the Las Palmas apartments are set to open in April.

But Bruce Furniss, SVP and multifamily specialist with Grubb & Ellis’ Anaheim office, says that although large multifamily complexes are being built in Irvine and other parts of south Orange County, those units account for only a very small piece of the pie, compared to the availability of rental space countywide.

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