Multifamily demand remained very strong, as evidenced by the 3,636 units absorbed for the year ending Q3 2017, up by 4.0% from the year ending in Q3 2016, and up by 36.8% over the 10-year average
The relatively low vacancy rate of 4.4% increased marginally from a year ago
New unit deliveries remained at peak levels with 4,954 units completed year to date, while starts decreased only slightly from the same time last year
The average monthly effective rent of $1,843 increased 3.2% from the prior year and has increased for 28 consecutive quarters
Acquisitions activity remained elevated but below 2016’s peak volume; the year-to-date $1.2 billion total was 21.2% less than the same time last year; activity in the garden apartment sector (90.1% of the market) edged down by 9.4% through Q3, while mid/high-rise assets fell more suddenly
Cap rates for stabilized infill and suburban assets held firm as private buyers searched for value-add opportunities; multifamily cap rates in the O.C. rank among the nation’s lowest and local professionals expect no change for H2 2017.