Costa Mesa Multifamily Market Report

Multifamily Market Overview

Costa Mesa is a vibrant submarket located in Orange County, CA, known for its diverse culture, thriving arts scene, and recreational opportunities. The submarket is home to South Coast Plaza, one of the largest shopping centers in the U.S. The market’s multifamily sector experienced a resurgence in positive absorption in 2023, driven by the leasing activity of the almost 400-unit Halcyon House. The submarket vacancy rate is once again declining after a spike in 2022, attributed to the property’s completion and associated occupancy losses.

The positive net absorption in the submarket marks a turnaround from the losses experienced in 2022. Over the last 12 months, net absorption has amounted to approximately 140 units. The submarket’s vacancy is decreasing as demand increases, currently at 3.7% as of Q1 2024. Apartment rents in Costa Mesa are on the rise once more after a recent decline. On average, rents across all inventory categories have increased by 2.8% in the past year.

Historically, development in Costa Mesa has been relatively restricted. Of the 30,000 apartment units constructed in Orange County over the past decade, only 770 are in Costa Mesa.

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Economy

Employers

The primary sectors in Costa Mesa, CA, with the most employees, include Retail Trade, Professional, Scientific, & Technical Services, and Health Care & Social Assistance. Utilities, Real Estate & Rental & Leasing, and Management of Companies & Enterprises are the industries offering the highest salaries.