O.C. Rents Rise 7% to an Average of $956, Survey Finds

Rents in Orange County rose 7% over the past year, to an average $956 a month, a real estate research firm reported Thursday.

The region’s booming economy, which has produced a greater percentage of jobs and lower unemployment than almost any other place in California, is outpacing builders’ ability to construct more apartments.

“We’re nowhere near satiating the demand” in Orange County, said Caroline Latham, a partner of RealFacts, a Marin County-based firm that conducts a quarterly rental survey.

Indeed, occupancy rates in the county’s 31 cities range from a low of 94.2% in Westminster to 99.1% in Anaheim Hills. Overall, the region’s apartments were 97% occupied, compared with 96.3% a year ago.

The report surveys 460 apartment complexes in Orange County, containing at least 80 units. There were 108,000 units included in the survey.

The most expensive place to rent is Newport Beach, where landlords are getting an average of $1,576 a month. The least expensive place is La Habra, where rents average $758 per month.

Analysts believe apartment rents are headed higher in the coming months, but at a slower pace than this year’s 7% increase.

Prices have reached a point where people will look elsewhere or consider buying a home, especially if interest rates remain low, said David Jones, vice president, Marcus & Millichap, a leading apartment brokerage that projects rents rising 4% next year.

Tom Bannon, executive vice president of the California Apartment Assn. in Sacramento, believes slower job growth will result in lower rental increases next year.

“I don’t think you’ll see the rent increases you’ve seen over the last 18 months,” he said. “They’ll probably flatten.”