Riverside-San Bernardino
Multifamily Market Report

Rental outlook bright across key Inland Empire submarkets.  Less new supply this year removes hurdles in several areas of the market. While vacancy rose above 6 percent last year in the Palm Springs-Coachella Valley submarket, a roughly 60 percent decline in deliveries in 2026 should ease some pressure. Although near-term demand is less apparent amid national logistics challenges that weigh on regional employers, tourism spending and the new Amazon warehouse in Desert Hot Springs are expected to reinforce Class C rental demand. Closer in, Riverside’s vacancy rate temporarily rose 50 basis points last year due to a spike in deliveries, but no completions this year should aid lease-up. In San Bernardino, without such stock growth, vacancy compressed to the mid-4 percent range. Metrowide, rental demand could benefit from trade negotiation breakthroughs, reinvigorating hiring, with government and healthcare roles continuing to expand in the interim. This would build upon the market’s already relatively low vacancy rate on a national scale.