When reading a recent article in the Orange County register, this particular story jumped out at me. We’ve always known Orange County is an expensive place to live, but California is in general. I would’ve thought places such as Los Angeles, the Bay Area, or even San Diego could be tougher. But that’s not what the numbers say.
“Survey Says” took a look at various rankings and scorecards evaluating geographic locations, noting these grades are best viewed as a blend of interpretation and data.
Buzz: Orange County ranks as one of the toughest spots to find an apartment in California, while Western Los Angeles County scores as the easiest.
RentCafe’s mid-year study of apartment markets nationwide revealed the most competitive places to find a rental in larger complexes, including 12 markets across the Golden State.
What do the numbers say?
Nationally, four of the 12 California markets had above-average competitiveness grades.
Orange County ranks as the 2nd toughest place to find an apartment in California and the 8th toughest nationally. WOW!
Let’s dive into the numbers that create these grades to understand what somebody looking for a rental in OC might experience when searching for a new spot to call home.
Key Metrics:
- Empty Units: In the six most competitive markets, 4.4% of units were vacant compared to 6.3% in the least competitive.
- Vacancy Length: Units go unrented for an average of 44 days in the most competitive markets, versus 47 days in the least competitive.
- Prospective Tenants: There are 11 prospective tenants per unit in the most competitive markets, compared to 10 in the least competitive.
- Renewal Rate: A measure of popularity shows that 54% of tenants stay in their units in the most competitive markets, versus 51% in the least competitive.
- New Choices: The most competitive places saw 2.2 new units entering the market per 1,000 existing apartments, compared to 4.6 in the least competitive.
Details
Here are the 12 California rental markets ranked on RentCafe’s competitiveness scale – from hardest to rent to easiest – and the variables behind these gradings:
- Silicon Valley: 5% vacant, 40 days vacant, 12 prospective tenants, and no new units. Ranked as California’s third-toughest market in early 2024.
- Orange County: 4% vacant, 44 days vacant, 12 prospective tenants, and 3.8 new units per 1,000 existing rentals. Ranked as the toughest market in early 2024.
- Eastern Los Angeles County: 4% vacant, 45 days vacant, 14 prospective tenants, and no new units. Ranked fourth-toughest in early 2024.
- San Diego: 5% vacant, 43 days vacant, 10 prospective tenants, and 0.6 new units per 1,000 existing rentals. Ranked second-toughest in early 2024.
- Central Valley: 4% vacant, 45 days vacant, 10 prospective tenants, and 3.5 new units per 1,000 existing rentals. Ranked fifth-toughest in early 2024.
- Central Coast: 4% vacant, 46 days vacant, 10 prospective tenants, and 5 new units per 1,000 existing rentals. Ranked sixth-toughest in early 2024.
- Sacramento: 6% vacant, 47 days vacant, 10 prospective tenants, and 1.7 new units per 1,000 existing rentals. Ranked seventh-toughest in early 2024.
- North Los Angeles County/Ventura County: 5% vacant, 48 days vacant, 11 prospective tenants, and 4.5 new units per 1,000 existing rentals. Ranked eighth-toughest in early 2024.
- Inland Empire: 6% vacant, 51 days vacant, 12 prospective tenants, and 4.8 new units per 1,000 existing rentals. Ranked tenth-toughest in early 2024.
- San Francisco Peninsula/North Bay: 7% vacant, 44 days vacant, 7 prospective tenants, and 5.8 new units per 1,000 existing rentals. Ranked ninth-toughest in early 2024.
- East Bay: 7% vacant, 48 days vacant, 9 prospective tenants, and 5.4 new units per 1,000 existing rentals. Ranked twelfth-toughest in early 2024.
- Western Los Angeles County: 7% vacant, 46 days vacant, 9 prospective tenants, and 5.6 new units per 1,000 existing rentals. Ranked eleventh-toughest in early 2024.
Why ORANGE COUNTY?
When you think of Orange County, you might think of suburbia. White-picket fence housing, pre-planned neighborhoods, and minimal high-rise apartment buildings. Well there you go. Other major metropolitan areas across the state have more high-rise/unit options. Orange County simply does not. So the condos, townhomes, and houses are naturally going to bring in a higher rent. But then there’s the supply issue. Less units = less supply. So with the combination of higher prices and limited options, it makes complete sense why Orange County ranks 2nd toughest place to find a rental in California and 8th toughest in the state!
Final Thoughts
California isn’t particularly renter-friendly. Using average scores, here’s what the typical California apartment tenant faces compared to RentCafe’s national norms:
- Competitiveness Score: Surprisingly, California scores lower at 72.7 compared to the US average of 73.4.
- Empty Units: California has fewer vacancies at 5.3% compared to 6.7% nationwide.
- Vacancy Length: California matches the national average of 46 days.
- Prospective Tenants: California sees more prospective tenants with 11 compared to 8 nationwide.
- Renewal Rate: Californians switch landlords more often with a 52% renewal rate compared to 62% nationwide.
- New Choices: California’s construction pace is slower, with 3.4 new units per 1,000 existing units compared to 6.1 nationwide.
This detailed look at the rental market highlights the challenges faced by those searching for apartments in Orange County and beyond, highlighting just how competitive it is here in California.
The Sackin-Stone Team is here to help you find a place to buy or rent that meets your price and terms. Simply contact us today. It’s never too soon to chat.
