ORANGE COUNTY, CA—A lot of the focus on redevelopment in the Orange County market has been in the multifamily sector, which has followed a cyclical evolution in the last decade, following macroeconomic changes closely, RENTCafé's content developer Nadia Balint tells GlobeSt.com. The residential-rental website wanted to see how much recent developments throughout Orange County have changed some streets altogether and how big of a difference there is between the old and new scenery, same location, but years apart. With the help of Google Street View, it pinpointed some of the biggest cityscape changes between 2007 and 2015 and put together 12 interactive split-view visuals.
We spoke exclusively with Balint about what these visuals tell us, how development has changed over the years in Orange County and what future changes we can expect in development in this market.
GlobeSt.com: What trends have you noticed in the changes shown by the before-and-after slides?
Balint: From the 12 largest development sites we chose, half are residential buildings, which goes to show that a lot of the focus in recent development in the OC market has been in the multifamily sector. We see empty lots giving life to new housing options, such as Courtyard Marriott and Centerpointe Apartment Homes in Irvine. We see old, inefficient buildings being replaced by sustainable buildings such as LEED-Gold-certified the Crossing Apartments and LEED-Platinum-certified Anaheim Regional Transportation Intermodal Center.
GlobeSt.com: How do you think development has changed over the years in Orange County?
Balint: Development in the multifamily segment in Orange County has had a cyclical evolution in the last decade, following macroeconomic changes closely. Ten years ago, a moderate number of apartments were being built in OC—around 2,500 per year on average. Leading toward 2009/2010, apartment construction surged in Orange County, surpassing 4,000 units per year due to the housing boom, then suddenly crashed afterward. The recession effect is seen in the low number of building-permit applications in 2009 and 2010 and in that as few as 200 new apartments opened in 2011. The effects of the recession continued to be felt for the next three to four years, with overall construction down significantly. But market optimism is coming back along with demand, since the economy has recovered and incomes are growing. New apartment supply has surpassed 4,000 units per year in the past two years and it's mainly targeting high-end renters. More than 80% of the new apartment buildings that opened in 2015 were high-end and in 2016, 90%.
GlobeSt.com: What future changes can we expect in development in this market?
Balint: We project about 4,000 new apartment units to be completed this year in Orange County, but this new supply is still insufficient, representing less than 2% of total stock. Nonetheless, with a moderate economic growth expected to continue into the next year, apartment construction is likely to remain strong. Moreover, the Yardi Matrix September Rents Survey identifies Orange County as one of the leading markets that currently perform well in the multifamily segment, indicating that demand remains strong across the board in this area. To back that up, our records show that more than 20,000 apartments are currently either under construction, planned or prospective. The majority are clustered in Anaheim and Irvine, and more than two thirds are expected to be high-end.
GlobeSt.com: What else should our readers know about your findings?
Balint: Our specialty is the apartment market which we study down to the smallest details. Our research focuses on large multifamily buildings of 50+ units.
Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.
ORANGE COUNTY, CA—A lot of the focus on redevelopment in the Orange County market has been in the multifamily sector, which has followed a cyclical evolution in the last decade, following macroeconomic changes closely, RENTCafé's content developer Nadia Balint tells GlobeSt.com. The residential-rental website wanted to see how much recent developments throughout Orange County have changed some streets altogether and how big of a difference there is between the old and new scenery, same location, but years apart. With the help of
We spoke exclusively with Balint about what these visuals tell us, how development has changed over the years in Orange County and what future changes we can expect in development in this market.
GlobeSt.com: What trends have you noticed in the changes shown by the before-and-after slides?
Balint: From the 12 largest development sites we chose, half are residential buildings, which goes to show that a lot of the focus in recent development in the OC market has been in the multifamily sector. We see empty lots giving life to new housing options, such as Courtyard Marriott and Centerpointe Apartment Homes in Irvine. We see old, inefficient buildings being replaced by sustainable buildings such as LEED-Gold-certified the Crossing Apartments and LEED-Platinum-certified Anaheim Regional Transportation Intermodal Center.
GlobeSt.com: How do you think development has changed over the years in Orange County?
Balint: Development in the multifamily segment in Orange County has had a cyclical evolution in the last decade, following macroeconomic changes closely. Ten years ago, a moderate number of apartments were being built in OC—around 2,500 per year on average. Leading toward 2009/2010, apartment construction surged in Orange County, surpassing 4,000 units per year due to the housing boom, then suddenly crashed afterward. The recession effect is seen in the low number of building-permit applications in 2009 and 2010 and in that as few as 200 new apartments opened in 2011. The effects of the recession continued to be felt for the next three to four years, with overall construction down significantly. But market optimism is coming back along with demand, since the economy has recovered and incomes are growing. New apartment supply has surpassed 4,000 units per year in the past two years and it's mainly targeting high-end renters. More than 80% of the new apartment buildings that opened in 2015 were high-end and in 2016, 90%.
GlobeSt.com: What future changes can we expect in development in this market?
Balint: We project about 4,000 new apartment units to be completed this year in Orange County, but this new supply is still insufficient, representing less than 2% of total stock. Nonetheless, with a moderate economic growth expected to continue into the next year, apartment construction is likely to remain strong. Moreover, the Yardi Matrix September Rents Survey identifies Orange County as one of the leading markets that currently perform well in the multifamily segment, indicating that demand remains strong across the board in this area. To back that up, our records show that more than 20,000 apartments are currently either under construction, planned or prospective. The majority are clustered in Anaheim and Irvine, and more than two thirds are expected to be high-end.
GlobeSt.com: What else should our readers know about your findings?
Balint: Our specialty is the apartment market which we study down to the smallest details. Our research focuses on large multifamily buildings of 50+ units.
Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.
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