Inland Empire 3Q23 Multifamily Market Insights Report: Vacancy remains tight, but rents slow to gain traction

Highlights:

• Property performance metrics in the Inland Empire softened a bit during the third quarter as asking rents ticked lower and vacancy rose. The pace of supply growth is expected to gain momentum in the coming periods with projects totaling 6,773 units currently under construction.
• Local vacancy ticked up 20 basis points in the last three months to 3.3%. Year over year, the rate rose by 40 basis points.
• Asking rents dipped 0.4% during the third quarter to $1,822 per month. Apartment rents have been inconsistent from quarter to quarter; rents are down 1.7% from one year ago.
• The multifamily investment market in the Inland Empire has been fairly quiet to this point in the year with only a handful of transactions closing in recent periods. The median sales price year to date is $234,400 per unit and cap rates are averaging close to 5%.

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