Inland Empire Q3 Multifamily Market Insights: Rents Spike as Vacancy Dips to Lowest Level Since 2018


  • Very strong operating conditions were recorded in the Inland Empire apartment market during the third quarter. With the local economy rebounding, vacancy tightened and rents gained momentum. Investors are responding to the strengthening conditions by increasing activity.
  • Vacancy in the Inland Empire dropped 20 basis points during the third quarter, falling to 3.2 percent. Year over year, the rate has declined 50 basis points.
  • Following a period of strong rent growth in the second quarter, area rents spiked 10.8 percent during the third quarter, reaching $1,716 per month. Asking rents have increased 17.6 percent year over year.
  • Investment activity gained momentum during the third quarter with more properties changing hands in the past three months than closed in the entire first half of this year. Cap rates are compressing as demand intensifies. Cap rates year to date have averaged about 4.1 percent, but in the third quarter, they fell to approximately 3.5 percent.

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