Inland Empire Q4 Multifamily Market Report: Tight operating conditions and ongoing demand fueling new development


  • Operating conditions cooled during the fourth quarter with rents declining and vacancy inching higher. After a slowdown in apartment deliveries in 2021, developers were more active in 2022 with the completion of roughly 2,370 units for the year. New construction will accelerate again in 2023.
  • Local vacancy ticked higher before the end of 2022, rising 10 basis points during the fourth quarter to 3 percent. Despite the minimal increase at the end of the year, the rate still declined 10 basis points in 2022, the second consecutive year where conditions tightened.
  • Rent trends were also mixed in 2022. For the full year, asking rents rose 5.1 percent to $1,818 per month. During the fourth quarter, however, rents dipped nearly 2 percent, offsetting some of the year’s earlier gains.
  • The multifamily investment market slowed in the final few months of the year even as pricing remained well above the 2021 figure. The median sales price in 2022 was $334,500 per unit, up 26 percent from the median price in 2021. Cap rates averaged around 3.75 percent during the fourth quarter.

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