Contact Us

Demand for OC Apartments Isn't Slowing

Orange County
Demand for OC Apartments Isn't Slowing


Zillow chief economist Stan Humphries tells us that conditions still bode well for apartment demand in Southern California, though with a bit of a headwind: the local economy is creating jobs, rents are up (2.9% year-over-year in Orange and LA counties combined, according to Stan), and so are occupancies. For-sale housing is also bouncing back, but despite that demand will continue to fall heavily on the rental side, because a lot of people still have impaired credit, and the Gen Ys are still less than sanguine about buying a place to live, Stan says. People are also still moving out of the doubled-up arrangements with roommates and family members that the recession forced on them. They usually rent their own place before buying.


One thing currently working against rental demand is that for-sale housing is still more affordable in SoCal than it has been historically. But that isnt a strong enough headwind to derail apartment demand, Stan says, even thats going to change in a year or two as home prices go up and interest rates rise. The markets still going to need a lot of rental units going forward, he says, including market-rate and affordable. Just last week, for instance, affordable housing specialist Jamboree Housing Corp broke ground on the 74-unit second phase of Doria Apartment Homes in Irvine. It's the companys second workforce housing development in partnership with the Irvine Community Land Trust.