December 17, 2018

Inland Empire Q3 Report: Consistently Low Vacancy, Steady Demand Pushing Rents Higher

Report highlights:

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The Inland Empire multifamily market continued to post steady performance in the third quarter. The market is highlighted by low vacancy and rising rents. Looking ahead, apartment construction should accelerate, although employment growth should be sufficient to absorb much of the new inventory.
Apartment vacancy in the Inland Empire has been very steady year to date. The rate ended the third quarter at 3.2 percent, identical to the vacancy rate in both the first and second quarters of 2018. Vacancy is up 30 basis points year over year.
Local asking rents have posted consistent gains thus far in 2018. Asking rents ended the third quarter at $1,349 per month, 3.5 percent higher than one year ago.
After a slow first half of the year, sales of apartment buildings accelerated during the third quarter. Prices and cap rates thus far in 2018 have closely tracked levels from last year.