Inland Empire Q1 Multifamily Market Report: With Fundamentals Strong, Investment Activity Likely to Gain Momentum
Highlights:
- After a strong close to 2018, the multifamily market in the Inland Empire got off to a slower start during the first quarter of this year. Some of this is attributable to a more modest rate of employment expansion; the pace of job growth is expected to gain momentum going forward.
- Apartment vacancy ticked up 20 basis points during the first quarter, reaching 3.3 percent. The rate is up just 10 basis points from one year ago.
- Asking rents ticked up during the first quarter, rising to $1,370 per month; rents are up 3.8 percent year over year.
- Sales activity to start 2019 was slower than in recent periods and was concentrated in apartment complexes with fewer than 100 units. The median price dipped a modest 3 percent during the first quarter, while cap rates ticked up 20 basis points to the low 5 percent range.