Inland Empire Multifamily Report – Fall 2020
The area continued to top the nation for rent growth going into the fourth quarter.
The Inland Empire’s multifamily market benefits greatly from its vicinity to Los Angeles and the Bay Area, with incoming residents from more expensive, denser markets driving demand and rent growth. Rents were the highest in the nation on a trailing three-month basis through October, up 1.2 percent to $1,669, while the U.S. average remained flat at $1,464.
Employment in the metro continued to deteriorate, clocking in at -9.9 percent year-over-year during the 12 months ending in September, below the -9.3 percent U.S. rate. The metro’s economic rehabilitation is caught between California’s economic reconstruction and the nation’s recovery. The unemployment rate improved steadily from the all-time high of 15.1 percent in May to 10.5 percent in August, while preliminary data for September pointed to 10.4 percent. Leisure and hospitality shrunk by 30 percent, while trade, transportation and utilities–the metro’s largest sector–contracted by 3.4 percent. Amazon’s newest fulfillment center in Beaumont expanded the warehousing footprint, which is sustained by the surge in e-commerce purchases.
Multifamily deals totaled $477 million through October, with an average price per unit that rose 13.7 percent to $218,799. Meanwhile, developers delivered 2,383 units and had another 2,302 underway.