Research

Information and expert analytics of trends impacting the investment real estate marketplace

Apartment fundamentals are strong but............

Many Orange County Workers and Families are ''Priced Out Of The Market'' for housing

2019 income required to afford a median-priced one-bedroom apartment: $66,310 - Up 27% since 2015

Cuts in Federal and State funding have reduced investment in affordable housing 75% since 2008

12.1% = ''Percentage of OC residents live in poverty''

16.5% = ''Percentage of OC children live in poverty''

39% = ''Percentage of OC families who are financially unstable''

42% = ''Percentage of first-time buyers who can afford to buy a home''

Orange County at a Glance*

Research Reports & Investment Insights

2019 Median Household Income

2019 Median Home Price

2019 Apartment Vacancy Rate Forecast

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2019 Average Monthly Rent 

2018 Employment Growth

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Proportion of Jobs with Median Wage Less Than The Housing Wage

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Percentage of Families with Children Spending More than 50% of Income on Rent

%

Marcus & Millichap Research Reports
2019 Investor Forecast Overview - Marcus & Millichap
  • Pursuit of yield drives capital beyond the core. As multifamily yields have compressed, an increasing portion of “mobile capital” acquiring assets priced over $15 million has migrated to secondary and tertiary markets. Whereas in 2010 nearly 60 percent of the dollar volume was focused in primary markets, in 2018 the share of capital inverted with 60 percent of the capital flowing to secondary and tertiary markets. This trend $18 will likely be sustained in 2019.

  • Increased investor caution may elevate expectation gap. Stock market volatility, rising interest rates, trade tensions and the implications of a flattening yield curve will weigh on buyer sentiment and inspire increasingly cautious underwriting. Sellers, focusing on positive performance metrics, may price assets more aggressively and the resulting expectation gap could weigh on transaction timelines.

  • Portfolio diversity increasingly important to private investors.A range of localized risks such as natural disasters, metro-level economic downturns, and the rise of state or metro-level policy decisions such as rent control have inspired investors to more carefully consider geographic diversification. Following the spate of recent hurricanes across Texas and the Southeast as well as the recent Proposition 10 vote in California, interstate buyer activity has accelerated.

Multi Housing News
1031 Exchange Information
Call us at 949-419-3232 for reports on the following 1031 Topics:

  • Rules for 1031 Exchanges
  • Related Parties and LLC Issues
  • Reverse Exchanges
  • California Clawback
Orange County Housing and Economic Trends
Units Magazine
2016

2015

CEL Associates - e-Newsletter
CEL Associates provides great services and resources. Here are links to newsletters in their archive which recommend you read:

To access CEL’s full archive of articles, click here

Yardi Matrix
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Triple Net Investing
Allen Matkins | UCLA Anderson Forecast
Saddleback College Economic Reports