Orange County, Calif., Apartment Sales Up 15.6%, but Values Fall
O.C.’s multifamily occupancy is one of the nation’s highest at 96.4 percent, while rents grow faster than the national average
By Greg Cornfield October 27, 2026 1:45 pm
reprints
Orange County’s multifamily investment market is gaining momentum despite declining property values, as apartment owners tap into some of the tightest occupancy rates and strongest rent growth in the country.
A report released Tuesday from Yardi Matrix found that multifamily investment sales in O.C. hit $656 million through the first eight months of 2026 for a 15.6 percent increase compared to the same period last year. However, the average sales price fell 14.8 percent from the end of last year to $376,551 per unit, while the national average fell just 3.5 percent nationally to $192,668 per unit.
Yardi Matrix attributes O.C.’s value drop to the quality of the assets traded this year, which have not included many higher-end properties. Nearly half of the county’s transaction volume came from a two-property portfolio acquisition.
The largest stand-alone sale was Eagle Real Estate Group’s $133 million acquisition of a 402-unit apartment community in Garden Grove from Bridge Investment Group in June. The property includes 82 affordable apartments and traded for $329,600 per unit.
The other top deals included Post Investment Group’s $62 million acquisition in Santa Ana, Bascom Group’s $53 million deal in Buena Park, and Benedict Canyon Equities’ $43 million acquisition in Anaheim.
Meanwhile, O.C.’s apartment fundamentals have been strong. Multifamily occupancy stood at 96.4 percent in July, tying San Francisco for the third-highest rate nationally, despite declining 30 basis points from a year earlier.
Average asking rents hit $2,897 per month in August, which is 1.4 percent higher than a year prior, and a full percentage point above the national average of 0.4 percent. Higher-end lifestyle apartments reached $3,285 per month.
Rents increased annually in 22 of the county’s 26 submarkets. Brea led with 3.8 percent growth to $2,714 per month, followed by Buena Park-Cypress rising 3.5 percent to $2,557. Newport Beach remained the most expensive submarket at $3,815 per month, which is up 2.7 percent compared to August 2025.
On the development side, builders started 3,077 apartments across seven properties through August, up 31.2 percent from the same period in 2025. New construction through August has already surpassed the 2,990 units started during all of 2025.
Construction is largely focused around Irvine. North Irvine led with 3,898 units underway, followed by South Irvine with 1,776. Combined, North, South and West Irvine accounted for nearly 60 percent of Orange County’s construction pipeline.
The largest project underway is Irvine Company’s 1,858-unit Discovery Park development in the North Irvine neighborhood, which will include 244 affordable apartments and is expected to be completed in late 2028. The developer also completed the 430-unit Colonnade at the Market Place, including 18 affordable units, which is the county’s largest apartment completion this year through August.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
