The market for multifamily investments in Orange County is regaining momentum. Despite declining property values, owners are benefiting from one of the highest occupancy rates nationwide and above-average rental growth. According to a recent report by Yardi Matrix, transaction volume in the first eight months of 2026 reached a total of 656 million US dollars. This represents an increase of 15.6 per cent compared to the same period last year.
At the same time, the average sale price per residential unit fell by 14.8 per cent compared to the end of the previous year to 376,551 dollars. At the national level, the decline was significantly more moderate, down 3.5 per cent to an average of 192,668 dollars per unit. Yardi Matrix attributes the price drop in the Californian county primarily to the composition of traded properties, as fewer assets from the top price segment were sold during the current year. Almost half of the total transaction volume was also accounted for by the acquisition of a portfolio comprising just two properties.
Major transactions and solid leasing figures
The largest individual transaction was the acquisition of a 402-unit residential complex in Garden Grove by Eagle Real Estate Group, which purchased the property from Bridge Investment Group in June for 133 million dollars. The purchase price amounted to 329,600 dollars per unit; the complex includes 82 rent-restricted apartments. Other notable deals included an acquisition by Post Investment Group in Santa Ana for 62 million dollars, a commitment by the Bascom Group in Buena Park totalling 53 million dollars, and an acquisition by Benedict Canyon Equities in Anaheim for 43 million dollars.
Fundamental market data in Orange County continues to prove exceptionally stable. The occupancy rate stood at 96.4 per cent in July, which, following a slight decline of 30 basis points year on year, represents the third-highest figure in the United States alongside San Francisco. The average asking rent rose to 2,897 dollars per month by August, up 1.4 per cent year on year, significantly outperforming the national average of 0.4 per cent. For high-end lifestyle apartments, average asking rents stood at 3,285 dollars per month.
Submarket performance and brisk construction activity
Rents increased year on year in 22 of the county's 26 submarkets. The strongest growth was recorded in Brea, with a 3.8 per cent rise to 2,714 dollars per month, followed by Buena Park-Cypress at 3.5 per cent to 2,557 dollars. Newport Beach remained the most expensive submarket, with an average monthly rent of 3,815 dollars, representing an increase of 2.7 per cent.
Construction activity is also seeing a noticeable revival: by August, developers had broken ground on 3,077 flats across seven projects, an increase of 31.2 per cent compared with the same period last year. Consequently, after eight months, new construction volume had already surpassed the full-year figure for 2025 of 2,990 units. Construction activity is concentrated in the Irvine area. The largest scheme is the Discovery Park project in North Irvine, developed by the Irvine Company with 1,858 flats, scheduled for completion at the end of 2028.
