Orange County remains economic powerhouse in Southern California
The multifamily market in Orange County, Calif., continues to see solid performance — due to strong demand and moderate supply growth — while single-family housing is among the most expensive in the nation, reported Yardi Matrix. Despite policies that clash with the state’s ties to global business opportunities, Orange County remains an economic powerhouse in Southern California.
In anticipation of rent-control legislation changes, only five multifamily assets traded in Orange County in 2019 through November, for a combined $279 million. When the state’s AB 1482 law takes effect in January 2020, rent growth will likely be impacted. Consequently, investors could become less attracted to value-add deals in Orange County, for which acquisition yields have been as high as 8 percent. In the first 11 months of 2019, some 2,181 units came online and another 5,000 units were under way. Absorption is expected to keep up, sustained by an uptick in high-paying jobs.