Multifamily Market Report
Luxury Apartment Demand Tested in Area of
Regionally Lower Housing Costs
Delivery spike coincides with above-average vacancy. Responding to historically low availability during most of the pandemic, builders are slated to complete more Inland Empire apartments in 2023 than during the prior three-year stretch combined. This influx of supply, and a first quarter vacancy rate that ranked highest among Southern California metros, indicates the market may face some near-term volatility. Fortunately, construction is dispersed throughout Riverside and San Bernardino counties, with more than 20 cities home to at least one conventional project. Additionally, the metro’s average Class A rent is $90 to $170 per month below the mean Class B rate in nearby markets, attracting renters from these locations eager to lower their housing costs without reducing quality. This dynamic and economic growth will support relocations to the metro for the foreseeable future, allowing the inflow of units to be absorbed over time.