Inland Empire Multifamily

The Case for the Inland Empire

Rent Spikes and strong market fundamentals in the IE are fueling strong multifamily sales velocity.

1) Inland Empire Market Fundamentals Are STRONG

  • The Inland Empire multifamily market concluded a year of rapid improvement in 2021 with additional strengthening in the fourth quarter. Vacancy tightened and rents rose. The improving market fundamentals fueled accelerating investment activity and steep
    per-unit price appreciation.
  • Multifamily vacancies tightened in 2021 to around 3%

  • Asking rents reached a record high during the fourth quarter 2021 averaging $1,729/month which represents roughly an 18% year-over-year increase

  • The investment market strengthened throughout 2021 with cap rate compression fueled by investor demand.

2) Inland Empire Employment Numbers Continue to Grow

  • There is incredibly strong rent growth in the Inland Empire with more than 65,000 jobs added in 2021 representing an increase of over 4% from the prior year.

  • Many of the jobs added were in the trade, transportation and utilities sector. The IE continues to be one of the best-performing industrial hubs in the nation.

  • Employers are expected to expand payrolls by nearly 3% in the coming year, adding approximately 46,000 jobs.

3) New Multifamily Developments are on the Way

  • Close to 4,000 multifamily units were earmarked as ‘under construction’ at year end 2021 which was triple the amount at the same time in 2020.

  • Permitting spiked during the final quarter of 2021 as developers permits for more than 1,700 multifamily units in the final few months of 2021.