• Multifamily demand was firm as evidenced by the 2,128 units absorbed in 2017, which is up by 10.5% from 2016, and up by 13.3% over the 10-year average.

  • The relatively low vacancy rate of 4.1% is up by 20 basis points (bps) from a year ago.

  • New deliveries remain at peak levels with 2,906 units completed in 2017.

  • In 2017, the average monthly effective rent of $2,025 was down by 0.5% from the prior year, and the first negative growth rate since 2010.

  • Investment activity registers an annual record and volumes continue their ascent for the sixth year in a row. Investment sales are up by 9.2% from 2016, worth a total of $1.9 billion.

  • Cap rates for stabilized infill and suburban assets held firm as private buyers continued to search for value-add opportunities. Multifamily cap rates in Orange County are some of the nation’s lowest and local CBRE professionals expect no change for H1 2018. NCREIF returns moderated from 9.4% in 2016 to 8.9% in 2017.