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Market Report

Riverside-San Bernardino Multifamily Market Report

2Q 2023

Renter Demand for Luxury Apartments
Tested in Area of Regionally Lower Housing Costs

Delivery spike coincides with above-average vacancy. Responding to historically low vacancy during most of the pandemic, builders are slated to complete more Inland Empire apartments in 2023 than during the prior three-year stretch. This influx of supply, and a first quarter vacancy rate that ranked highest among Southern California markets, indicates the metro may face some near-term volatility. Fortunately, construction is dispersed throughout Riverside and San Bernardino counties, with more than 20 cities home to at least one conventional project. Additionally, the metro’s average Class A rent is $90 to $170 per month below the mean Class B rate of nearby markets, attracting renters from these locales eager to lower their housing costs without stepping down in quality. This dynamic and economic growth will support relocations to the metro for the foreseeable future, allowing the inflow of units to be absorbed over time. 
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