Orange County Rent Trends
➤Rents in Orange County rose 3.8% year-over year through November, outpacing the 3.1% national rate. The metro’s average rent stood at $2,161, well above the $1,473 national average. Following a slowdown in deliveries in 2019 compared to 2018, occupancy in stabilized properties remained flat year-over-year at 96.0% as of October, higher than the 95.0% national average.
➤ Rents in the working-class Renter-by-Necessity segment rose 3.3% to $1,936, while Lifestyle rates went up 4.5% to $2,484. A rise in high paying employment coupled with steady household creation continues to boost demand across the board, giving owners upside potential to further raise rents. However, on Jan. 1, 2020, the state’s latest rent control law, known as AB 1482, will take effect. The new law will limit rent increases for properties older than 15 years to 5% per year plus inflation, up to a maximum of 10%, while protecting residents from evictions. In anticipation of the new restrictions, many owners began significantly raising rates in November, which also contributed to the uptick.
➤ Growth was led by La Habra, where rents rose 6.6% to $1,674. North Irvine came in second (up 6.2% to 2,484), followed by Yorba Linda (up 6.1% to $2,088), Placentia (up 6.0% to $1,971), and Anaheim Hills (up 5.9% to $2,157). In Newport Beach—the metro’s priciest submarket— rents rose 2.6% to $2,815