Rent, Investment Performance Accelerate
The Inland Empire’s multifamily market is booming. Rents averaged $1,993 in October, a 1.9% increase on a trailing three-month (T3) basis. The metro’s year-over-year rent gains of 18.5% far surpassed the 13.7% national figure for the same period and, given the market’s lower costs compared to the neighboring Los Angeles metro, this strong expansion is expected to continue. Lifestyle and working-class Renter-by-Necessity figures increased on a T3 basis by 1.9% and 1.8%, respectively, to $2,350 and $1,727, alongside solid upticks in occupancy.
The metro added 65,700 jobs during the 12 months ending in August, a year-over-year increase of 4.5%. Although the unemployment rate fell to 6.6% in September, it remained significantly higher than the 4.8% national figure. The Inland Empire’s trade, transportation and utilities sector—the metro’s largest—grew the most, adding 25,400 jobs alongside sustained, heightened distribution and e-commerce activity.
More than 2,700 units were under construction at the end of October, but deliveries are expected to slightly exceed 1,900 units by year-end, a decrease of more than 40% compared to 2020. As development slowed, investment activity rose swiftly: Transactions totaled $1.9 billion year-to-date through October, putting the market on track to meet or surpass the 2016 cycle high of $2.2 billion.
Read the full Matrix Multifamily Inland Empire Report-Fall 2021