Orange County is shifting from suburban sprawl toward denser, vertical development as housing demand grows and developable land shrinks.
Builders have more than 3,000 apartment units in development through August, up 31.2 percent from the same period in 2025, per Yardi Matrix. Projects are moving toward five- and six-story buildings and mixed-use districts instead of low-density sprawl.
The OCVibe project, a $5 billion, 100-acre mixed-use development in Anaheim from the Samueli Family, will feature five- and six-story apartment buildings, two hotels, office and retail space, and a mass timber office, market hall and concert venue opening next year. Scott Frick, senior vice president for development at OCVibe, said housing is "obviously the highest and best use" for large parcels.
Related California is transforming a former shopping center in Santa Ana into a 41-acre district with up to 3,750 apartments, a hotel, senior housing, and 350,000 square feet of commercial space worth $3 billion. Shopoff Realty Investments is redeveloping the Westminster Mall site into Bolsa Pacific, a $2.5 billion mixed-use community. The Irvine Company is building more than 1,300 units at Tustin Ranch, a former Marine air station. Newport Beach approved hundreds of new housing units near John Wayne Airport this summer.
Orange County multifamily transaction volumes have reached their highest points since 2022, with per-unit prices up 20 percent, per Northmarq data. Retail vacancy sits under 5 percent with rent growth of roughly 32.5 percent over the last decade. JLL's retail investment sales volume is up 40 percent compared to last year.
The pace remains controlled. The Irvine Company's land control and development approach keeps supply growth to roughly 1 percent annually, unlike Sun Belt markets such as Austin. Peter Hauser, Northmarq senior vice president, said investors are selling Los Angeles multifamily holdings to move money into Orange County as a safer alternative.
Local rent control poses a risk. Santa Ana approved localized rent control limiting increases to 2 percent annually, which Hauser said is "hard" when insurance and utilities climb 5 to 8 percent.