Multifamily Market Report
Historically Large Pipeline and Regionally Lower
Cost Home Prices Test Rental Demand
Vacancy holds below national mean, despite challenges. The Inland Empire’s population exceeds that of both San Diego and Orange counties by at least 1.4 million. However, the metro has 125,000 and 75,000 fewer apartments than these two markets, respectively. On paper, this would suggest that the Inland Empire is home to regionally tight vacancy. Instead, it entered the second half with a 4.9 percent rate, the highest among major Southern California markets. The local median home price — $560,000 in June — is one reason for this standing, as single-family ownership is attainable for a larger portion of the populace when compared to neighboring markets. A growing rental stock is also playing a role, with more than 6,100 units completed over the four-year span ending in June and 6,900 rentals in the active pipeline as of August. Together, these factors point to near-term vacancy elevation; however, half of the metro’s submarkets noted positive net absorption during the second quarter.