Consumer demand remains strong, supporting rental rate increases amid elevated levels of construction. The Riverside-San Bernardino market is growing its residential inventory as household formation totals approximately 25,000 over the past 12 months ending in March. There are new single-family developments under construction in Temecula and southeast Riverside and multifamily delivery totals have been high in Ontario and Chino Hills. As the new housing is absorbed, demand will increase the need for shopping centers, convenience stores and restaurants. The construction pipeline has almost 1.3 million square feet set to finish by the end of the year. While down from last year, this is above the average annual delivery of 1 million square feet since 2015.