The Inland Empire’s multifamily market is booming. Rents averaged $1,993 in October, a 1.9 percent increase on a trailing three-month (T3) basis. The metro’s year-over-year rent gains of 18.5 percent far surpassed the 13.7 percent national figure for the same period and, given the market’s lower costs compared to the neighboring Los Angeles metro, this strong expansion is expected to continue. Lifestyle and working-class Renter-by-Necessity figures increased on a T3 basis by 1.9 percent and 1.8 percent, respectively, to $2,350 and $1,727, alongside solid upticks in occupancy.
The metro added 65,700 jobs during the 12 months ending in August, a year-over-year increase of 4.5 percent. Although the unemployment rate fell to 6.6 percent in September, it remained significantly higher than the 4.8 percent national figure. The Inland Empire’s trade, transportation and utilities sector—the metro’s largest—grew the most, adding 25,400 jobs alongside sustained, heightened distribution and e-commerce activity.
More than 2,700 units were under construction at the end of October, but deliveries are expected to slightly exceed 1,900 units by year-end, a decrease of more than 40 percent compared to 2020. As development slowed, investment activity rose swiftly: Transactions totaled $1.9 billion year-to-date through October, putting the market on track to meet or surpass the 2016 cycle high of $2.2 billion.