Luna Harper
Orange County, California, is known for its beaches, affluent communities, and robust economy, making it a desirable place to live. As of 2024, rents in Orange County have been rising while rents in Los Angeles and other parts of the US have dropped or stabilized. This is due to a post-pandemic shift in demand from urban centers to suburbs, with people opting for remote work. While there is a cap on rent increases in Los Angeles and Orange counties, rents in Orange County are predicted to continue rising in 2025, driven by continued demand and limited supply.
| Characteristics | Values |
|---|---|
| Rental Price Trend | Rental prices in Orange County are likely to see a modest increase in 2025, possibly around 3-5%. |
| Demand | Orange County is known for its high demand and limited supply. |
| Vacancy Rates | Low vacancy rates are anticipated to continue, with a potential dip if new construction does not meet demand. |
| Luxury Rentals | High-end rentals in areas like Newport Beach and Laguna Beach will likely remain in high demand. |
| Economic Fluctuations | Broader economic downturns or policy shifts at the federal or state level could impact employment and rental demand. |
| Environmental Concerns | Areas prone to natural disasters or coastal erosion might see shifts in rental desirability, potentially affecting rent premiums. |
| Rent Control | Santa Ana is the only city in Orange County with its own rent-control law. |
| Annual Rent Cap | Landlords in Los Angeles and Orange counties are capped at 8.8% rent increases annually. |
| Median Rent | The median rent for a typical unit in Orange County rose to $2,546 in the first quarter of 2025. |
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What You'll Learn
- Rents in Orange County increased in 2024 while they decreased in Los Angeles
- The residential rental market in Orange County has remained strong post-pandemic
- There is a high demand and limited supply of housing in Orange County
- Santa Ana is the only city in Orange County with its own rent-control law
- Rents in Orange County are predicted to increase modestly in 2025
Rents in Orange County increased in 2024 while they decreased in Los Angeles
Rents in Los Angeles County have been decreasing, while those in Orange County have been increasing. This is a reflection of a national trend, according to experts, where rents in urban centres are dropping as people move to the suburbs.
Data from ApartmentList.com shows that cities in Los Angeles County, including Burbank, Long Beach, L.A., Santa Monica, and West Hollywood, have recorded median rent prices that are 3% to 5% lower than they were the previous year. On the other hand, rents in Orange County have either spiked or held firm since the start of the pandemic.
The demand for housing in urban centres, such as Los Angeles, dropped as the COVID-19 pandemic led many office staffers to work remotely, allowing them to move to suburbs like Orange County. This shift in demand has resulted in a sustained upwelling of rental prices in suburban areas, according to Rob Warnock, a researcher at Apartment List.
While rents in Los Angeles County dropped by 7% in 2020 and then rebounded by 15% in 2021, rents in Orange County never dropped and instead skyrocketed by 22% in 2021. As of February 2024, rents in Los Angeles County were down 2.6% year-over-year, while Orange County rents were up 2.2%.
The rental market in Orange County is known for its high demand and limited supply, which has resulted in a resilient market that goes against broader national trends. With this trajectory, rental prices in Orange County are expected to continue rising modestly in 2025, possibly by 3-5%.
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The residential rental market in Orange County has remained strong post-pandemic
The residential rental market in Orange County, California, has demonstrated resilience in the post-pandemic era, with rents either spiking or holding firm. While rents in Los Angeles and other parts of the United States have decreased or stabilised, Orange County has witnessed an upward trend. This phenomenon reflects a broader national pattern, as people migrate from urban centres to suburbs, such as those in Orange County, due to the increased flexibility of remote work.
Data from ApartmentList.com and the LA Times reveals that while median rents in Los Angeles County cities dropped by 3% to 5% year-over-year, Orange County rents increased by 2.2% in 2023 and rose again by 1% in the first quarter of 2025. Notably, Orange County rents never experienced a decline during the pandemic, even in 2020, and instead skyrocketed by 22% in 2021.
The rental market in Orange County is characterised by high demand and limited supply, contributing to its resilience against broader national trends. The median home value in the county reflects this, with a year-over-year increase of approximately 0.5% as of late 2024. This steady appreciation indicates both the desirability of the region and the scarcity of available properties.
Looking ahead, rental prices in Orange County are projected to continue rising modestly in 2025, with increases of around 3% to 5%. Areas close to business districts and educational institutions are expected to experience the most significant price increases. Additionally, luxury rentals in locations like Newport Beach and Laguna Beach will likely remain in high demand, catering to affluent individuals seeking upscale living.
However, broader economic downturns or policy changes at the federal or state level could impact employment and, consequently, rental demand in Orange County. Furthermore, increasing awareness and regulation around climate change may influence rental desirability in areas prone to natural disasters or coastal erosion, potentially affecting rent premiums.
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There is a high demand and limited supply of housing in Orange County
Orange County, California, is known for its high demand and limited supply of housing. This has resulted in rising rents, even as rents in nearby Los Angeles and other parts of the country have dropped or stabilized. The median home value in Orange County was around $1,040,320 as of late 2024, with a year-over-year increase of approximately 0.5%. This steady appreciation reflects the desirability of the region and the scarcity of available properties.
The high demand for housing in Orange County can be attributed to several factors. Firstly, the county has a robust economy and is known for its pristine beaches and affluent communities, making it a prime location for both living and investment. Additionally, the COVID-19 pandemic may have contributed to the increased demand for suburban areas like Orange County, as many office workers transitioned to remote work.
The limited supply of housing in Orange County has further contributed to the upward pressure on rents. Vacancy rates are extremely low, and new construction has struggled to keep up with demand. This scenario empowers landlords in negotiations and can lead to rent increases that squeeze tenants financially. For example, María Alejandra Barboza, a community tenant counselor in Orange County, shared a story about a family whose rent more than doubled after their building was sold to a new owner.
To address the challenges posed by high demand and limited supply in the housing market, experts and community advocates have called for enhanced tenant protections and more comprehensive rent control laws. Santa Ana, the only city in Orange County with its own rent-control ordinance, provides a model that other cities in the county could emulate. Additionally, understanding market dynamics and forecasts can help renters, landlords, and investors make informed decisions. For instance, areas near business districts and educational institutions are expected to experience even greater price pressures.
Looking ahead, rental prices in Orange County are projected to continue rising modestly. With continued demand and limited new supply, rents could increase by around 3-5% in 2025. While economic downturns or policy changes could impact rental demand, acting quickly on desirable listings and considering longer lease terms may help stabilize costs for renters in the face of these challenges.
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Santa Ana is the only city in Orange County with its own rent-control law
Rents in Orange County have been increasing, contrary to the decreasing rents in Los Angeles and other parts of the United States. While rents in Los Angeles County cities decreased by 3% to 5% compared to the previous year, rents in Orange County increased by 2.2%. This is a reflection of a national trend, as people moved from urban centers to suburbs during the pandemic, as many office staffers were allowed to work remotely.
In the midst of these rising rents, Santa Ana, a city in Orange County, stands out as the only city in the county with its own rent-control law. On October 21, 2021, after a decade-long push from the Santa Ana community to address housing affordability, the city officially implemented rent control into law. Known as the "Just Cause Eviction and Rent Stabilization Ordinances," the law limits rent increases to 3% per year and provides stronger protections against evictions. It's important to note that these rent control measures only apply to certain rental buildings constructed before 1995, and landlords can petition the city for exemptions under certain conditions.
The rent control law in Santa Ana was met with mixed reactions. Supporters of the law argued that it provides stability and protection for tenants, helping to curb rapidly increasing rents. On the other hand, critics claimed that it fails to address the core issue of housing affordability and may lead to challenges for landlords in seeing reasonable returns on their properties.
While Santa Ana takes the lead in rent control within Orange County, other cities in the county have also explored different approaches to manage rising rents. Anaheim, for example, regulates certain affordable housing units and properties within its rent-stabilized programs, often targeting older multi-family buildings or those receiving subsidies. Fullerton, another city in Orange County, has agreements with property owners to restrict rents to below regular market rates for specific affordable housing developments.
As of February 2024, there is a cap on rent increases in both Los Angeles and Orange counties, with landlords limited to an 8.8% annual increase in applicable units. However, this cap may still pose challenges for tenants, and tenant counselors continue to advocate for stronger tenant protections and affordable housing solutions in Orange County.
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Rents in Orange County are predicted to increase modestly in 2025
Rents in Orange County, California, have historically been high compared to other parts of the US. While rents in cities across Los Angeles County have decreased, rents in Orange County have either spiked or held firm since the start of the pandemic.
In 2021, rents in Orange County skyrocketed by 22% before levelling out in 2022 and increasing modestly in 2023. In 2024, rents in Los Angeles County were down 2.6% over the previous year, while Orange County prices were up 2.2%.
As we move into 2025, the rental market in Orange County is expected to remain resilient against broader national trends. Rental prices are predicted to increase modestly, possibly by around 3-5%, driven by continued demand and limited new supply. Areas close to business districts and educational institutions are expected to experience the most significant price increases.
Vacancy rates in Orange County are anticipated to remain extremely low, potentially dipping even lower if new construction fails to keep up with demand. This situation gives landlords the upper hand in negotiations, although it may also encourage them to offer short-term or flexible lease options to attract tenants.
While these predictions indicate a modest increase in rents, broader economic downturns or policy shifts could impact employment and rental demand in Orange County, potentially affecting rent prices.
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Frequently asked questions
Yes, rents in Orange County are increasing. While rents in Los Angeles and other parts of the US have dropped or stabilized, rents in Orange County have either spiked or held firm since the start of the pandemic.
The demand for housing in Orange County, known for its high demand and limited supply, has increased since the pandemic as people moved to suburbs with remote work options.
Rental prices in Orange County are likely to see a modest increase in 2025, possibly around 3-5%, driven by continued demand and limited new supply.
Santa Ana is the only city in Orange County with its own rent-control law, so most cities rely on statewide rules. Community tenant counselors are pressing legislators for solutions and rights for tenants.
