While analyzing Orange County’s home value data in July, Metrostudy’s chief economist Mark Boud noticed something: Irvine was an outlier … quite a bit.
So he repeated the numbers and ran them again. Same result.
Boud’s analysis confirmed that Irvine’s Nev-Home values tripled Orange County’s overall appreciation rate.
Since 2005, Irvine’s home values have increased 77%. The rest of Orange County gained 22%.
“The proof of Irvine’s worth is in the numbers,” says Boud. “The city has clearly outperformed its neighbors.”
And the correlation does not only exist in times of economic growth.
Boud’s numbers also show that Irvine’s homes depreciate much more slowly than those in the surrounding communities during troubled times.
“We believe it is Irvine’s balance that drives and maintains value,” says Boud. “Schools, parks, open spaces, high-paying jobs, public safety … all of these factors come together positively here in ways that other communities simply cannot match.”
Boud also notes that value should not be confused with price.
“It’s the difference between climate and weather,” explains Boud. “We consider the long-term arc of house values. Prices will fluctuate from time to time, but what is more important for a local economy is long-term performance, and Irvine is in a class of its own. “
While Irvine’s balance is well known, its schools appear to be the main driving force behind local families. According to surveys by Irvine Pacific, an Irvine-based home builder, schools were the number one factor behind the decision to buy in Irvine.
“We bought our home in Portola Springs eight years ago because of the incredible schools and the convenient location – it’s close to everything,” said Cameron Salehi, a Portola Springs homeowner. “We love it here and plan to stay, but it’s great that our house values keep rising.”