Huntington Beach is one of Orange County, CA’s seaside cities. According to the 2010 U.S. Census, it has a population of 189,992 during that year, which means it is the most popular beach city in the county, as well as the seventh in the Los Angeles-Long Beach-Anaheim area. The population is also growing, with an estimated 200,809 people living there in 2014. It also has a 9.5 mile stretch of beautiful, sandy beach and is perfect for the surfing and beach community. In fact, it is affectionately known as “Surf City”.
Huntington Beach Multifamily Property for Sale & Lease – Should You Buy or Lease?
If you are interested in multifamily space in Huntington Beach for use as an investment or for a business, you have two broad options available to you: buying or leasing. There are pros and cons to both of these options.
Looking first at buying multifamily space, the pros include:
- That your costs are fixed when it comes to expenses for the property because mortgage payments are generally constant each month
- That you can get really good tax deductions, including property taxes and mortgage interest.
- That you can build up substantial savings, as the property is likely to appreciate over time.
However, the cons are substantial as well and include:
- Not having much flexibility. Since you are the owner of the property, it will be necessary to look for a buyer if you need to move to another place.
- Having high upfront costs, primarily because of a 30% down payment based on the selling price. You will also have to pay for maintenance, appraisal, and other property costs.
Your other option is to lease your multifamily space, which also has clear benefits, including:
- You can get a prime property, which is important if your public image matters.
- You can free up working capital because you don’t have to pay for a down payment.
- You can focus on actually running your business, rather than having to be stressed out by the problems of property ownership.
However, there are some downsides as well, such as the fact that:
- Your costs will be variable, primarily because of regular rent increases.
- You do not build up any equity in the property, since you don’t own it.
To help choose between the two options, being aware of the trends and statistics in terms of prices, supply, and demand, can be advantageous.
Huntington Beach Multifamily Property for Sale – Trends and Statistics
- The asking price for multifamily properties in Huntington Beach $314,841.90, which is a 0.7% increase over the past three months, and a 10.5% increase year on year. This is higher than the state ($206,014) and the metro ($254,071.41) area.
- The index of total available multifamily properties for sale in Los Angeles-Long Beach-Huntington Beach is 29, which represents a 13.4% increase over the past three months but a 2.5% decrease year on year.
- The index of total number of listings of multifamily properties available in Los Angeles-Long Beach-Huntington Beach is 24, which is a 8.9% increase over the past three months, but a 1.3% decrease year on year.
- The profile view index multifamily property for sale in the Los Angeles-Long Beach-Huntington Beach metro area is 97, which is a 24.9% increase over the past three months, and a 22.5% increase year on year.
- The index of total number of units of multifamily property for sale in the Los Angeles-Long Beach-Huntington Beach area is 21, which is a 12.2% increase over the past three months, but an 11% decrease year on year.
Huntington Beach Multifamily Property for Lease – Trends and Statistics
Because Orange County is such an affluent part of the state of California, leasing a multifamily property can be very expensive. Statistics have shown that:
- The average rent for a multifamily property in Huntington Beach was $1,507, representing a 4.3% increase year on year.
- The vacancy rate for multifamily properties in Huntington Beach in 2015 was 4.8%, which is a 79 basis point change year on year.
The renter household statistics has also been released, and has shown that:
- 36% of households had children present, with the average household having 2.7 people, and a median household income of $54,694.
- Of the available multifamily properties, 19% were single family units, 31% were 2-4 units, 13% were 5-9 units, 11% were 10-19 units, and 26% were 20 units or more.
- 44% of units were constructed before 1970, 52% of units were built between 1970 and 1999, and 5% of units were constructed between 2000 and 2014.