Market Report
Riverside-San Bernardino Multifamily Market Report
2025 Investment Forecast
Affordability Continues to Attract Renters;
Downtowns and Areas Near Major Highways Appeal to Investors
Living costs bolster renter demand amid uneven construction. Multifamily effective rents in the Inland Empire still constitute less than a third of the market’s median household income — a mark of affordability in the Southern California region that is supporting local renter demand. This dynamic is most notable in areas bordering Orange County, such as Corona, Riverside and Moreno Valley, where the heaviest drops in vacancy over 2024 were reported. Upper-tier units found greater appeal in the first submarket, while the other two saw a surge in demand for lower-tier units. This momentum may carry forward as supply pressure eases in some of these areas. Despite a larger annual pipeline overall, most submarkets will see lower arrivals this year than in 2024, as deliveries remain concentrated in Temecula-Murrieta and areas near Perris. This distribution, coupled with state-leading net in-migration, will help foster demand for existing units, potentially driving tighter operations in submarkets like Ontario-Chino and Hemet-Perris-Lake Elsinore, where net absorption was strongest over 2024.
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