The single-family housing market has yet to recover in Southern California but regional opportunities are sprouting up in multifamily, according to a new forecast from Wells Fargo chief economist John Silvia.
In Orange County multifamily building generally looks positive, Silva said during a conference call Tuesday afternoon. However, office vacancies in the area likely will be a drag on the local economy for two to five years.
Single-family construction continues to lag amid a weak job market.
In Los Angeles, multifamily building is “a big positive,” Silva said. In the particularly hard-hit Inland Empire area “cyclical recovery really hasn't started” and home prices remain weak, he noted.
However, lower home prices in the Inland Empire have reduced the cost of living there relative to Los Angeles and Orange County – a positive for the region.
