Inland Empire Multifamily Demand Outpaces Supply by 1,000 Units
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Multifamily fundamentals across the Inland Empire are getting a boost as new supply cools dramatically, according to a new market report from CBRE.
Net absorption in the second quarter was 1,048 units, well outpacing the 28 units in deliveries. That reverses the first-quarter trend when those categories posted 132 units against 260 units, respectively, when supply outpaced demand. All submarkets posted positive absorption, with San Bernardino seeing the most net move-ins (242 units).
"Strong population growth and cooling construction activity supported a more favorable supply-demand balance across the region," CBRE added in remarks.
As a result, occupancy followed suit, improving by 50 basis points from the first quarter to 96 percent. This was the best figure posted since the first quarter of 2025.
That said, average rents contracted by 1.3 percent to $2,350. CBRE attributed this to the fact that growth was concentrated among older properties.
Also, multifamily investment in the Inland Empire weakened, with volume coming in at just $82 million versus $108.7 million in the first quarter.
"Transaction activity [was] entirely concentrated in pre-1990 vintage assets as investors targeted older product at more accessible price points," CBRE said.
WMC Commercial Properties made the largest deal in the second quarter in the market, snagging a 186-unit property in Upland for $48.50 million. The only other eight-figure deal involved Ncrc CDR LLC buying a 160-unit property in Corona for $24 million. The next closest was Khan Aamer N; Khan Yas' deal for a 23-unit property in Palm Desert, which went for $3.85 million.
But overall, landlords will hope that limited supply will continue to drive strong fundamentals as construction continues to wind down.
Source: GlobeSt/ALM