Inland Empire Multifamily Report – Fall 2019
The Inland Empire’s affordability advantage compared to other SoCal metros is drawing in new residents, expanding the local labor market and driving up demand for multifamily product.
Inland Empire rent evolution, click to enlarge
The Inland Empire’s affordability advantage compared to other SoCal metros is drawing in new residents, expanding the local labor market and driving up demand for multifamily product. A historically limited supply of new apartments is maintaining rent growth above the national average.
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Education and health services led employment gains as of June (12,900 jobs), as new outpatient facilities become operational while the number of residents without health insurance dropped significantly between 2012 and late 2018, following the implementation of the Affordable Care Act. Leisure and hospitality gained 6,900 jobs, due to record tourism numbers in 2018, when visitor spending exceeded $7.8 billion in Riverside County and hit an all-time high of $4.9 billion in San Bernardino County. Government employment rose by 5,100 jobs, followed by professional and business services (4,300 jobs) and trade, transportation and utilities (3,500 jobs).
Inland Empire sales volume and number of properties sold, click to enlarge
In 2019 through August, more than $1 billion in multifamily assets traded in the metro, at an average price per unit of $209,785, a new cycle peak. Developers completed five projects totaling 1,357 units, a significant uptick following last year’s cycle low of only 503 units, while another 4,481 units were under construction. Boosted by the migration of new residents from coastal counties, rent growth is expected to stay at 4.5 percent by year-end.
