Riverside-San Bernardino Multifamily Market Report

Despite challenges, vacancy remains below the national average. The region’s population exceeds that of San Diego and Orange counties by over one million but has 125,000 and 75,000 fewer rentals, respectively. This dynamic would appear to support regionally tight vacancy, yet the Inland Empire posted a 5.3 percent rate in June — the highest in Southern California. The local median home price of $590,000 is significantly below that of other major Southern California markets, making homeownership more accessible. Historically, single-family homebuilding has outpaced multifamily construction. With 3,200 units forecasted for 2024 delivery and a record 5,200 expected in 2025, however, new rental supply is on the rise. While this represents a sizable pipeline, most of these units appear warranted. Over the past year ended in June, Class A vacancy remained unchanged at 5.0 percent — the lowest among the property classes.