Navigating Orange County’s Rental Market: What Property Owners Need to Know

September 22, 2023

Navigating Orange County’s Rental Market: What Property Owners Need to Know

If you’re new to Orange County real estate, you will quickly realize that not all rental markets are cut from the same cloth. Very few property owners have seen an animal quite like the Orange County, CA rental market. 

With a population over 3 million (and growing), Orange County has one of the hottest rental markets in the country.

In this blog, we discuss the basics of Orange County’s rental market in 2023.

Orange County – California’s Most Competitive Rental Market

Orange County is the third largest county in all of California. And it’s one of the most desirable – with its pristine beaches, urban hubs, work opportunities, and engrossing entertainment and culture. People just love living here!

So, it’s no wonder why rental vacancy rates have recently reached historical lows. 

Orange County’s multifamily rental market currently has a vacancy rate of just 4.3% (compared to the national average at 6.8%). And for every vacant Orange County apartment, 11 potential residents apply.

Responding to the Rental Shortage

To combat the rental shortage, Orange County is prioritizing residential development. 

Right now, 16 new multifamily properties are being built. The developments will create 5,570 new residential units (about 2.2% of the current inventory).

When these complexes are built, Orange County’s vacancy rate should increase. But further development will likely remain difficult due to high construction costs.

Orange County Rental Prices in 2023

What are renters paying in Orange County, CA? 

Rental prices are averaging around $2,610 per month. On the high end, Class A apartments are going as high as $4,500, and lower quality Class C apartments average about $1,950 per month.

Orange County Short-Term Rental Limits

In an effort to encourage more investors to rent out their properties long-term, most cities in Orange County place limits – or entirely prohibit – short-term rentals of any kind. 

Find each city’s short-term rental rules here.

True Property Management | #1 Choice Property Manager Orange County, CA

Thinking about investing in Orange County residential real estate? You’re going to need a property management company you can trust.

Our team has earned a strong reputation across the region, ranked as the Best Property Manager in 13 different Orange County cities. Contact us today to learn more about what we can do for you!

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