Multifamily Market Report
Regionally Discounted Rents Sustain Appeal;
Developers Concentrate on Large Properties
Rent cost disparity is evident. The gap between the average Class A and Class B rent in the Inland Empire stood at $535 per month entering the second half of this year, while the margin between Class B and C registered at $580 per month. This growing disparity and ongoing inflation are motivating more renters to move down the quality stack in search of lower costs. Recent leasing data reflects this, as Class A vacancy rose the most among segments at 90 basis points, while the Class B rate climbed 50 basis points and Class C availability declined. Submarkets with locally discounted rents are benefiting from this trickle-down effect as well. Entering July, Coachella Valley and Fontana-Rialto-Colton were each home to 1.3 percent vacancy. On a broader scale, the metro's mean monthly rent was at least $450 below other Southern California metros at the onset of July, suggesting regional relocations to the Inland Empire will continue.