Orange County, CA Multifamily Market Report | Matthews | Q1 2026

Market Overview
‍

Orange County closed Q1 2026 with vacancy at 4.3%, one of the lowest rates among major U.S. markets, and rent growth at 1.1%, reflecting a market defined more by structural scarcity than by demand cycles. Asking rents averaged $2,800 per unit, with pricing holding firm across all asset classes. Only about 5,000 units are under construction, constrained by land scarcity and regulatory barriers that limit how much new supply can enter the market -- future development is increasingly dependent on retail site redevelopment. Sales volume reached $295 million for the quarter at $443K per unit and a 4.5% cap rate, with both institutional and private buyers staying active on the strength of the market's high barriers to entry and long-term appreciation story. Major employers, including Walt Disney Co., UC Irvine, and Providence Southern California, anchor a median household income of $119,622 and a renter base that is not going anywhere.

‍About Matthews

‍
Matthews Real Estate Investment Services is a national commercial real estate brokerage and advisory firm serving multifamily owners, investors, and developers across major U.S. markets. Their Orange County, CA Q1 2026 multifamily market report tracks vacancy, rent growth, cap rates, and sales volume to help clients assess market conditions and refine investment timing. To read the full report, click here.