Overall, the first quarter was softer for Orange County's multifamily sector. Most notably, investment activity dwindled, with sales volume dropping to $197.8 million versus the $452.3 million in the fourth quarter, according to data from CBRE's latest report on the market.
"The quarter-over-quarter decline largely reflected smaller transaction sizes during Q1 2026," CBRE explained.
The largest sale by far in the first quarter involved 245-unit Park Grove in the Garden Grove submarket trading for $84 million. The next largest was
Mauna Loa Lambert in Brea going for $27.25 million, followed by Casa de Oro Apartments selling for $14.25 million. The rest of the transactions recorded in the report were in the seven-figure range.
Also, rents were stagnated at an average of $2,896. CBRE said this came as tenants struggled with affordability, which led to less demand, limiting the pricing power of landlords. Speaking of demand, net absorption fell to 371 units versus the 940 posted in the fourth quarter.
On the bright side, net absorption remains positive, meaning "leasing demand remained intact," according to CBRE. The West Irvine area drove the majority of the demand, which came in at 327 units.
Occupancy dropped by 10 basis points to 96.1 percent, as vacant supply hit the market, with 461 completions recorded in the first quarter. Yet, construction appears to be falling dramatically, with just 461 units underway versus the 1,642 units at the end of 2025. Development fell due to economic concerns and rising costs, according to CBRE.
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