Inland Empire Multifamily Market Shows Resilient Growth Despite Historic Construction Surge

Inland Empire’s multifamily sector outperforms the U.S. average with a 1.7% rent increase and 95.4% occupancy, despite a triple-speed development pace in 2025.

By: AXL Media

Published: Mar 12, 2026, 11:19 AM EDT

Source: https://www.multihousingnews.com/

Rent Performance and Occupancy Resilience

As the final quarter of 2025 approached, the Inland Empire demonstrated significant market strength. Average advertised asking rents held firm at $2,165 through October, significantly outpacing the national average of $1,743. On a year-over-year basis, regional rents grew by 1.7%, more than triple the national growth rate of 0.5%. Furthermore, occupancy in stabilized assets inched upward by 20 basis points to reach 95.4%. This stability is particularly notable given the massive influx of new supply, suggesting that the region is successfully absorbing new units as they hit the market.

Divergent Labor Market Trends

The regional employment landscape presents a complex picture. While the Inland Empire added 14,600 net jobs over the 12 months ending in August 2025, the unemployment rate climbed to 6.1%. This figure remains higher than both the California state average (5.5%) and the national rate (4.3%). Job gains were heavily concentrated in the service sectors, with education and health services adding 14,300 roles and the government sector contributing 10,400. Conversely, the construction and manufacturing industries faced significant headwinds, shedding 6,600 and 2,800 jobs, respectively.

Infrastructure and Transit Evolution

The region’s long-term economic outlook is being bolstered by several high-profile infrastructure projects. The West Valley Connector is on track for a 2026 opening, while the San Bernardino County Transportation Authority (SBCTA) has successfully launched the Zero Emission Multiple Unit (ZEMU), the nation's first hydrogen-powered passenger train, on the Arrow corridor. Additionally, field work is advancing in Rancho Cucamonga for Brightline West, a high-speed rail project aiming to connect Southern California to Las Vegas by 2028 or 2029.