Riverside-San Bernardino Multifamily Market Report
Regionally Discounted Rents Sustain In-Migration;
Developers Concentrate on Large-Scale Properties
Lower-tier vacancy among nation's tightest. The gap between average Class B and Class C rent in the Inland Empire stood at $580 per month entering the second half of this year, the widest margin on record. This growing disparity and ongoing inflation are motivating more renters to seek lower-cost units. Recent leasing data reflects this, as Class C availability dropped 10 basis points over the past year ended in June to 0.9 percent, while Class B vacancy rose 50 basis points to an albeit still tight 1.8 percent. Submarkets with large Class C inventories and locally discounted rents are benefiting from this trickle-down effect. Entering July, Coachella Valley and Fontana-Rialto-Colton were each home to 1.3 percent vacancy. On a broader scale, the metro's mean monthly rent was at least $450 below other Southern California metros at the onset of July, suggesting regional relocations to the Inland Empire will continue.