New USC report forecasts Inland Empire rents to increase less than 2% in 2024

Published on

INLAND EMPIRE – At the annual USC Casden Multifamily Forecast, held on November 15, researchers reported that Inland Empire rents would increase less than 2% in 2024. 

USC researchers found that the Inland Empire will see close to 450 housing units being built every quarter next year. In addition, the vacancy rate will remain at 5 and a half to 6%.

A vacancy rate of 6% can be considered moderate. It suggests a rental market where there is a reasonable balance between supply and demand. 

Past and future trends in the Inland Empire

USC Associate Professor of Real Estate Moussa Diop said that the Inland Empire economy was propelled by industrial growth during COVID.

“The growth in industrial during COVID, and the fact that also housing – it was much less – more affordable in that area than in LA for instance. And we did gain a lot of population from LA, Orange County and San Diego County,” said Diop.

He goes on to say that the Inland Empire will experience the lowest rent increase in Southern California. 

“Riverside County and Chino-Rancho Cucamonga, will be the highest – the best performance in terms of rent growth. Rent will be much higher there,” said Diop. “But again, not the kind of rent growth you see in Orange County. You’re talking about just slightly above 2% annually.”

He also said rent growth in outlying areas of San Bernardino County – including Victorville and Apple Valley, will be basically stable and even slightly decreasing.

The economy now and going forward

According to Diop, the economy is currently going strong with 150,000 new jobs in October, after adding 336,000 jobs in September. He says unemployment has been at a 50-year low, at 4%.

Diop says the bad news is that the economy is not cooling down fast enough and it’s a concern for the Federal Reserve.

“So that’s the challenge we are facing because the Federal Reserve has increased interest rates many, many times and interest rates are now standing at a 20 year high,” said Diop. 

Diop said that at the November meeting, the Federal Reserve decided to leave key interest rates unchanged and many board members have been very forthcoming about the need for another increase.

“The Federal Reserve has been very clear. They’re steadfast at targeting the 2% inflation because we are sitting now at, let’s say 3.4, 3.7,” said Diop. “If inflation has to be brought down, let’s say – to 2%, it’s going to be quite painful. We may be going through a very challenging period if that’s going to happen.”

For more information on the USC Casden Multifamily Forecast visit https://lusk.usc.edu/casden/multifamily/conference

RELATED: Dream for All Phase II – $255 million fund for 20% down payment opening Spring 2024

spot_img

Latest articles

Popular party store going-out-of-business sale up to 50% off at all locations

CALIFORNIA – Party City recently updated its website on the closure of over 850...

IRS sending special payments up to $1,400 to 1 Million taxpayers

The Internal Revenue Service (IRS) announced December 20, that they would be sending special...

Teamsters say Amazon is denying their workers are on strike

VICTORVILLE – Amazon Teamsters went on strike nationwide, December 19, including at three Southern...

An update to the CA Lemon Law leaves consumers with less protection

CALIFORNIA – Several California Lemon Law updates go into effect in 2025 to help...

More like this

Amazon purchases 200 acres in SoCal for $162 Million to build warehouse

HESPERIA – Amazon purchased, at the end of October, 200 acres in Hesperia for...

Redfin makes 2 predictions for the 2025 California real estate market

CALIFORNIA – Redfin published a report, December 4, with two predictions for the 2025...

SoCal developer addressing housing supply shortage – releases floor plans priced in the mid $400Ks

HESPERIA – Silverwood developers released November 18, floor plans for their master planned community...