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Santa Ana Redhill Development <br />Figure 9: MFR Rent per SF <br />MFR Rent (Effective/SF/Month) <br />to $2.50 $2.24 <br />o $2.00 — t` <br />$1.50 <br />o <br />Q <br />o $1.00 <br />c $0.50 <br />rn <br />o $0.00 <br />2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 <br />—2-Mile Radius —Orange County <br />Source: Costar, BLS, AECOM <br />Figure 10: MFR Rent per Unit <br />MFR Rent (Effective/Unit/Month) <br />p $2,500 <br />M <br />o $1,998 <br />$2,000 <br />z $1,500 <br />`o <br />Q <br />o $1,000 <br />$500 <br />0 <br />N $o <br />2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 <br />—2-Mile Radius —Orange County <br />Source: Costar, BLS, AECOM <br />While the multifamily vacancy rate of the 2-mile radius has risen following additions of inventory around 2008, 2014 <br />and 2018, the market has absorbed these units fairly quickly as the rate stabilizes between 3%-5% (Inventory has <br />grown 27% since 2010, see Table 2.7 below). <br />Multifamily rent for both geographies has increased gradually since 2000 and was found to be approximately $2.24 <br />per SF or $1,998 and $1,928 in the 2-mile radius and Orange County respectively at the end of 2018. After adjusting <br />for inflation, this represents approximately a 17% increase in rent for both geographies and has pushed inflation <br />adjusted average rents slightly above their previous peak prior to the last recession. <br />Rent per unit is helpful to assess the health of a market, while rent per SF is an important input for the development <br />feasibility analysis modeling of the Project in the following sections. <br />Prepared for: City of Santa Ana 75%�_872 AECOM <br />V 16 <br />