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NEWPORT BEACH, CA—Some renters who can't afford Orange County's high and rising apartment rental rates are moving farther from their work to more-affordable locations or Orange County-adjacent markets where the rent discrepancy is significant, CBRE VP John Montakab tells GlobeSt.com.
According to CBRE research, with an average home price of $785,000 and stagnant income growth, Orange County will have a surplus of people who need housing but cannot afford the costly down payment and mortgage payments of buying a home. As a result, there has been a 33% rise in rents since 2011. With an expected addition of about 74,000 people over the next five years, and single-family homeownership out of reach for many, demand for multifamily will remain strong in Orange County.
The firm also reports that rent growth is likely to stay near the long-run average of 3.1% and vacancy is expected to continue trending downward—keeping Orange County well positioned through 2018 and beyond.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
