Riverside-San Bernardino Multifamily Market Report
Rental Sector Excels During Health Crisis; Near-Term Supply Additions Unable to Match Demand
Migration trends preserve sparse vacant stock. The Inland Empire entered 2021 as the nation’s tightest apartment market. Population growth during the health crisis is largely to credit. Since the second half of last year, the region has been a top relocation destination for higher-earning renters and lower-earning families seeking larger living spaces and reduced housing costs. The arrival of these various income households supported record absorption that slashed vacancy across all asset classes and elevated average rent by nearly 10 percent. Tight vacancy and household growth indicate a need for inventory expansion, yet the metro will record a four-year low delivery total in 2021. Riverside will be the only city to add multiple properties. Limited supply additions and recent double-digit rent growth should generate project proposals as the year progresses.