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Population and Job Growth Fueling Multifamily Demand

IRVINE, CA-In its first quarter report, Marcus & Millichap details the reasons for continued optimism in the health of the local apartment market.

By Joel Cone | Updated on April 26, 2001

IRVINE, CA-Insufficient construction of new multifamily product combined with a growing population base are expected to keep vacancy rates down and rents on the rise, as well as stabilize capitalization rates this year.

If its first quarter report on the Orange County apartment market, Marcus & Millichap is reporting that the county’s population base grew to 2.83 million last year, a 1.42% increase from 2.79 million the prior year. Although the per capita income has continued to increase by an average 5% annually, allowing tenants to pay higher rents, the gap between income and inflation are apparently narrowing.

Job growth in the county, which outpaced the nation, increased 3.4% last year. Currently there are almost 1.5 million workers employed here. Between the 7,000 new employees added by Disney to work at its new California Adventure theme park and an expected resurgence in defense spending promised by the Bush Administration, the county’s job growth is expected to be healthy again this year, but at a slower growth rate than in 2000.

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