Orange County home prices are expected to drop on average 7.3% next year, while residential housing permits will also fall, according to Chapman University economists led by President Emeritus Jim Doti.
Doti and his team presented their annual economic forecast today, predicting like many other economists before them that the U.S. will be hit by a recession by mid- to late 2023. They are predicting it will likely be a “mild recession.”
The Chapman researchers forecast the U.S. economy will contract 0.4% next year versus an estimated 2% growth this year, while inflation as measured by the consumer price index will slow to 5.8%.
“Over the last four years, Orange County has generated fewer jobs than California,” the Chapman economists said.
OC is expected to achieve only a half-percent of job growth in 2023, they added.
The total number of OC residential permits is forecast to drop by 21% from 7,100 units in 2022 to 5,600 units in 2023, according to the forecast.
For further details, see the Jan. 2 print edition of the Business Journal.
