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Market Report

Riverside-San Bernardino Multifamily Investment Forecast

2022 Outlook

Southern California's Most Affordable Rental Market Draws Residents From Neighboring Metros

Record headcounts in foundational industries preserve low vacancy. Local migration from Los Angeles County to Riverside-San Bernardino last year fueled the strongest rate of household formation in the Inland Empire since 2006. This growth backed robust rental demand that pushed vacancy rates below 2 percent throughout the housing spectrum, and supported double-digit rent growth across submarkets. Despite significant rent gains the metro's average effective rate was $500 per month lower than Los Angeles' mean entering 2022. A lower cost of living and expansion of the Inland Empire's largest employment sectors will continue to draw new residents to the area this year. Recognized as an industrial hub, the market is expected to add transportation and warehousing-related positions at a consistent pace as new facilities come online. Additionally, the number of education and health services positions is poised to reach a record mark. The combined growth of these two sectors drives overall job creation and apartment demand, enabling the metro to remain among the nation's tightest multifamily markets.
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