Orange County’s multifamily fundamentals remain among the strongest in California, with average rents at $2,644 and vacancy around 4.4%. Irvine accounts for most of the new construction, which has pushed local vacancy near 8%, but demand remains solid countywide. Investors continue to view Orange County as a safe, supply-constrained market, though rising costs and statewide rent caps are pressuring margins.
Orange County has historically been a very safe market for investors, given the high barrier to entry for new supply and strong diversified economy.
The new construction activity is welcome and will provide much-needed housing for the area. Rent growth and housing prices have gone up significantly year after year, and the supply/demand imbalance has led to state bill AB 1482, creating statewide rent control.
The issue at hand is a supply problem, and recent state bills AB 2243, SB 6, SB 30, and SB 8 will assist in returning some balance to the housing sector. Rent control tries to fix affordability, but the real challenge is adding enough housing to meet demand and the high cost of both insurance and utilities eroding net income.
Orange County has delivered 1,490 new apartments, year to date, with another 2,500 on track for delivery by the end of the year. Seventy percent of all construction activity is centered in Irvine, with a total construction increase of 43% from 2024. The new construction should continue to be absorbed and assist in curbing the pent-up demand for both rental and for-sale housing in Orange County and the state.
Individual cities that show the lowest vacancies are Santa Ana, Buena Park, Costa Mesa, and Huntington Beach, all below 5%. Conversely, Irvine vacancies have risen to 8%, accounting for the new construction supply.
Transaction volume has increased 26% from 2024 to 2025 between 10 to 49 units, and a 12% increase above 50 units over the same period. Pricing is similar from 2024 to 2025 with no significant increases.
Orange County remains one of the most desirable places to live in the country, but keeping it that way will require thoughtful planning to align housing supply with demand. Its strong economy and quality of life continue to attract residents, and local governments and developers must work together, as cities like Irvine and Anaheim have done, to maintain balance and affordability.