Inland Empire Multifamily Report – March 2023
Slow deliveries are helping cushion the effects of a cooling market.
Inland Empire rent evolution, click to enlarge
The Inland Empire has been one of the strongest performing rental markets in the U.S. throughout the past decade, with slow development and rapidly rising employment and population driving rent performance. However, marketwide and seasonal slowdowns have dampened growth, as rents were down 0.5 percent on a trailing three-month basis as of January, slightly above the U.S. figure, which was at 0.3 percent. Meanwhile, the overall average rate in the Inland Empire was $2,088, nearly $400 higher than the U.S. average but significantly more affordable than other Southern California areas.
READ THE FULL YARDI MATRIX REPORT
Inland Empire sales volume and number of properties sold, click to enlarge
Riverside and San Bernardino counties saw employment expansion outperform the U.S., up 5.5 percent year-over-year as of November and 160 basis points higher than the national figure. The counties’ proximity to nearby ports and higher land availability compared to other Southern California markets have provided leverage to build a strong logistics sector that drives growth for the local economy. That coupled with a strong education and health services sector, generated a gain of more than 400,000 residents since 2010.
Inland Empire. Photo by MattGush/iStockphoto.com
Development in the Inland Empire was limited even by the area’s standards, with only 641 units added in 2022. As a result, property values have risen considerably, to an average price per unit of $337,276, amid more than $4.5 billion in sales during the past 24 months.
