June 5, 2023

Inland Empire 1Q23 Multifamily Market Insights: Sales activity limited to Class C assets to start 2023

Highlights:

Apartment operating conditions in the Inland Empire softened slightly in the first quarter, as asking rents inched lower and vacancy ticked higher. Still, most current performance metrics are closely tracking levels from one year earlier.
Local vacancy inched up at the start of the year but remained in its recent range. The rate rose 10 basis points during the first quarter to 3.1% and is also just 10 basis points higher than one year ago.
Asking rents dipped lower during the first quarter, falling 0.5% to $1,809 per month. Average rents are up just $2 per month from one year ago.
Investment activity in the first quarter was limited to a handful of Class C properties. The median sales price was $240,600 per unit, while cap rates averaged 4.1% to start the year.