Riverside-San Bernardino Multifamily Market Report
2024 Investment Forecast
Regional Affordability Continues to Expand the Local Renter Pool;
Investors Broaden Their Boundaries
Most cities lack near-term completions, despite metro’s elevated delivery volume. Based on its mean effective rate and median income, the Inland Empire is the only Southern California market where a household contributes less than one-third of its annual earnings toward rent. Attracted to this regionally lower cost-of-living, a number of households and individuals relocated to the metro over the past two years, with just six other major U.S. markets adding more residents during the interval. Population growth continues this year, a boon for a metro with 5-plus percent vacancy across property tiers and a historically large near-term delivery slate. Fortunately, the latter is not the result of widespread development. Instead, completions are concentrated in Temecula-Murrieta and to a lesser extent the cities of Fontana and Moreno Valley. This dynamic, coupled with resident expansion, should improve demand for existing units in other areas of the expansive two-county metro, supporting positive net absorption.