Multifamily Market Report
Home Price Appreciation and Industrial
Growth Spur Demand Across Rental Tiers
Widening affordability gap a boon for luxury apartments. Unyielding demand for regionally lower-cost rentals has supported sub-2 percent vacancy and statewide-leading rent growth in Riverside-San Bernardino. Despite the 18 percent rent gain recorded last year, the metro's affordability gap, the difference between an average rental rate and a mortgage payment on a median priced home, has expanded to $650 — a figure well above the national average. Consequently, upper-tier units are an attractive alternative for households considering homeownership, with vacancy in the Class A sector at a record-low rate entering this year. Sparse luxury availability has prompted a rise in multifamily development. Still, only the neighboring cities of Ontario and Rancho Cucamonga have active pipelines larger than 500 units, suggesting upcoming supply additions will be well received.