SAN BERNARDINO COUNTY — Inland Empire home prices have jumped 24% since the second quarter of 2020, although price advantages are expected to decay. University of Riverside Center for Forecasting Chief Researcher Dr. Taner Osman discussed the trend, Wednesday, during the 12th Annual Inland Empire Economic Forecast Conference.
The strength of the Inland Empire’s housing market is due to its affordability compared to neighboring regions where median home prices are double. At a median price of $482,000, the Inland Empire’s existing single-family homes are significantly more affordable than those in Los Angeles ($841,000), Orange ($983,000), and San Diego ($802,000) counties. The limited number of homes for sale also contributes to the rising prices.
“That said, the region is becoming increasingly expensive relative to the rest of the nation,” said Osman. “Home price growth will slow if interest rates begin to tick up.”
The pandemic’s impact on online shopping gave a boost to the logistics industry where “the Inland Empire’s Transportation and Warehousing sector is 22% higher today (or +34,000 positions) compared to pre-pandemic levels.”
Osman also discussed the upward trend in wages.
Constrained labor supply will push wages higher for workers, and higher wages should draw more workers into the labor market. Taner Osman
Overall, Osman says the Inland Empire will see a continuation of the trends experienced in 2021. While there are longer term instabilities in the larger economy, economic growth over the next year looks relatively strong and steady for the region.
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