The Inland Empire, comprising Riverside and San Bernardino counties, is experiencing a notable surge in rents compared to other LA-area counties. As municipalities across Greater Los Angeles strive to meet their housing goals, the Inland Empire is in a healthier position for growth.
\nWhile Los Angeles, Ventura, and Orange counties deal with undersupplied multifamily rental markets, the I.E. is thriving by comparison, according to real estate experts at the Casden Multifamily Forecast and Conference held by the University of Southern California Lusk Center for Real Estate.<\/p>\n
Over the next two years, multifamily rents and vacancies are expected to rise across the region. Average rents in the I.E. are expected to climb 4.6 percent in that same period. Still, they will remain the most affordable market in the region, according to Moussa Diop, an associate professor of real estate at the USC Sol Price School of Public Policy.<\/p>\n
This year, monthly rents in the Inland Empire averaged $2,112, approximately 10 percent lower than Los Angeles County’s average and 25 percent below Orange County’s. The I.E. has seen about 3.6 percent annual growth in rent over the past five years. Vacancy in the I.E. is the highest in the region at 6.4 percent, though it’s predicted to fall in the coming quarters as demand gobbles up the housing supply.<\/p>\n
"The current very high vacancy is not really something that’s negative in any way," Diop said. "That’s what you expect with supply in a responsive market. You need to allow time for the additional supply to be absorbed, and then new development will take place." Los Angeles County’s rental market is "chronically undersupplied," according to Diop, as years of floundering construction leaves vacancy hovering around 5 percent despite a recent increase in new construction. Average rent in L.A. County rose 0.5 percent to $2,336 per month as rental inventory across the county grew by 1 percent. As of October, the vacancy rate was approximately 5.4 percent. By October 2027, vacancy is expected to fall slightly to 5.2 percent with rents averaging $2,350 a month. Rents will only grow by 0.6 percent over the next two years.<\/p>\n
Financing for new projects remains the largest hurdle for many developers in Southern California to overcome. Diop credited increasing federal debt, elevated interest rates, and a stock market bubble fueled by artificial intelligence investment as key obstacles to getting shovels in dirt. These issues plague cities across the country.<\/p>\n
"To cover the shortfall nationally, we will need to increase supply by close to 25 percent to 30 percent annually. It’s not going to happen," Diop said. "We don’t know how to build housing that fast. We need to understand that this is all about regulations. We have regulated our cities and ourselves into this crisis, and the only way to solve this is by changing those regulations."<\/p>\n
Modest rent hikes ahead in Southern California, USC forecasts<\/p>\n
Sentinel Real Estate picks up Inland Empire apartment complex for $148M<\/p>\n
Housing inventory rises in LA County<\/p>\n
In conclusion, the Inland Empire’s rental market is expected to experience significant growth in the coming years, with average rents climbing 4.6 percent over the next two years. While the region’s vacancy rate is currently high, it is expected to fall as demand increases. In contrast, Los Angeles County’s rental market is chronically undersupplied, with vacancy rates hovering around 5 percent. To address the housing shortage, regulatory changes are necessary to increase supply and meet demand.<\/p>\n
Q: What is the expected growth in multifamily rents in the Inland Empire over the next two years?
\nA: Average rents in the I.E. are expected to climb 4.6 percent over the next two years.
\nQ: How does the Inland Empire’s rental market compare to Los Angeles County’s?
\nA: The Inland Empire’s rental market is more affordable, with average rents 10 percent lower than Los Angeles County’s.
\nQ: What is the main challenge facing developers in Southern California?
\nA: Financing for new projects remains the largest hurdle, due to increasing federal debt, elevated interest rates, and a stock market bubble fueled by artificial intelligence investment.<\/p>\n","protected":false},"excerpt":{"rendered":"
Introduction to the Inland Empire’s Growing Rents The Inland Empire, comprising Riverside and San Bernardino counties, is experiencing a notable surge in rents compared to other LA-area counties. As municipalities across Greater Los Angeles strive to meet their housing goals, the Inland Empire is in a healthier position for growth. While Los Angeles, Ventura, and […]<\/p>\n","protected":false},"author":3,"featured_media":25930,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[24],"tags":[],"class_list":{"0":"post-25928","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-real-estate"},"jetpack_featured_media_url":"https:\/\/i0.wp.com\/static.therealdeal.com\/wp-content\/uploads\/2025\/12\/LA_IE-Housing-Growth-700x467.jpg?w=1920&resize=1920,1267&ssl=1","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/citystuff.com\/los-angeles\/wp-json\/wp\/v2\/posts\/25928"}],"collection":[{"href":"https:\/\/citystuff.com\/los-angeles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/citystuff.com\/los-angeles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/citystuff.com\/los-angeles\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/citystuff.com\/los-angeles\/wp-json\/wp\/v2\/comments?post=25928"}],"version-history":[{"count":1,"href":"https:\/\/citystuff.com\/los-angeles\/wp-json\/wp\/v2\/posts\/25928\/revisions"}],"predecessor-version":[{"id":25931,"href":"https:\/\/citystuff.com\/los-angeles\/wp-json\/wp\/v2\/posts\/25928\/revisions\/25931"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/citystuff.com\/los-angeles\/wp-json\/wp\/v2\/media\/25930"}],"wp:attachment":[{"href":"https:\/\/citystuff.com\/los-angeles\/wp-json\/wp\/v2\/media?parent=25928"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/citystuff.com\/los-angeles\/wp-json\/wp\/v2\/categories?post=25928"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/citystuff.com\/los-angeles\/wp-json\/wp\/v2\/tags?post=25928"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}