Newport Beach : Vacancy Rate is 1.8%--Conversions Blocked

For the seventh straight year, the vacancy rate for rental units in the city is below 5%, continuing to block the way for future condominium conversions.

The survey is taken annually in order to help the City Council set policy on requests for conversions.

The 1986 survey indicated a 1.85% vacancy rate for almost 9,000 rental units considered to be potential condominium conversion candidates, according to Aziz Aslami, assistant city planner.

“This year’s results, the lowest in seven years, shows we should continue to turn down any request for conversions,” Aslami said.

The condominium ordinance requires the city to establish a rental vacancy rate each year in order to determine whether loss of any of those units to condominiums would harm the overall housing stock. The 1980 census estimates the total number of rental units in Newport Beach at 12,932, roughly half the housing stock in the city.

Current city law states that if 5% or less of the city’s rental housing is vacant, requests for conversions of rental units to condominiums must be denied. Exceptions can be granted only if “the project will minimize the effect upon dwelling unit vacancy rate” or if two-thirds of the existing tenants are in favor of the conversion.

“One thing we can conclude,” Aslami added, “is that the rental units have been occupied at a better percentage than in previous years.” The vacancy rate was 2.5% in 1985, 3.9% in 1981 and 2.92% in 1979.

Senior planner Craig Bluell said that since 1980, only 13 rental units have been converted into condominiums.