Inland Empire Q2 Multifamily Market Report: Low Vacancies Fueling Rent Gains, Prompting New Development
Highlights:
- The Inland Empire multifamily market continued to record steady operations during the second quarter. Vacancy has remained low, and rents are rising at a rapid pace. The ongoing recovery in the local economy is supporting demand for apartment properties, and multifamily development activity is set to accelerate in the coming quarters.
- The vacancy rate remained unchanged from the start of the year, finishing the second quarter at a still-tight 3 percent. The rate declined 40 basis points during the last 12 months.
- Rents in the Inland Empire continue to rise at a rapid pace. Asking rents gained 2.5 percent in the second quarter to $1,853 per month. Year over year, local rents have spiked 19.7 percent.
- The local investment market strengthened during the second quarter as more properties sold at higher per-unit prices. The median sales price thus far in 2022 has reached $337,600 per unit, while cap rates have held fairly steady, averaging around 3.7 percent in the last three months.
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