Orange County Multifamily Rent Growth Slows

Rent Trends Remain Tepid

Globe St reports that Orange County multifamily rent growth is cooling after a period of rapid escalation. According to Colliers, the average monthly rent in Q1 was $2,736, only marginally higher than $2,707 in Q1 2025. Annual rent growth has dropped to 3.4% on average over the past two years, a marked slowdown from the 12.5% increases seen in 2021 and 2022. Central OC East posted the highest Q1 rent growth at 2.3%, followed by Costa Mesa at 2%.

Occupancy and Demand Face Headwinds

Occupancy rates across Orange County multifamily assets were stable at 95.9%, unchanged from last year. However, demand softened, with net absorption at 463 units, down from 559 in Q1 2025 and far below the 936 units delivered during the quarter. This demand-supply imbalance could influence leasing dynamics going forward, especially as broader rent trends across Los Angeles County continue to show downward pressure in recent quarters.

Sales Activity and Construction Pipeline

Despite rent moderation, Orange County multifamily sales reached $143M during Q1, up 32%. Average price per unit also increased by 1.3% to $429,078. On the development front, new construction is slowing, with 5,573 units underway compared to 7,272 units a year ago. The recent spike in supply combined with lower absorption may prompt further moderation in rent growth for the remainder of the year.