Inland Empire Q1 Multifamily Market Insights: Rapid rent growth recorded as vacancy continues to inch lower

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• The Inland Empire multifamily market strengthened in the first quarter. Asking rents recorded rapid gains in the first few months of the year while vacancies tightened. Multifamily developers continued to move projects into the construction pipeline to meet persistent renter demand.
• The vacancy rate tightened at the start of 2022, dropping 10 basis points in the first quarter to 3 percent. This marked the third consecutive quarter where the rate improved. Year over year, vacancy has declined by 40 basis points.
• Asking rents jumped 4.5 percent in the first quarter to $1,807 per month, and during the past 12 months, rents have surged 21.5 percent.
• The pace of sales slowed in the first quarter, although transaction activity is in line with the start of last year. Cap rates rose in recent months, averaging about 3.6 percent, while the median sales price reached $276,200 per unit.

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