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|July 27, 2017|
Where to put everyone as construction lags
INLAND EMPIRE – (INT) – Lagging apartment construction is feeding the supply-and-demand formula that’s boosting rental rates across the 2-county region.
While apartment construction across the nation is at a 20-year high, the Inland Empire is among the worst large metropolitan areas for new apartment completion - down 41% from last year. Only 1,164 new units are expected to be completed this year.
Quick facts from Yardi Matrix:
• With a high occupancy rate - currently pegged at 96.3% - the Inland Empire desperately needs to speed up apartment construction to keep the rents stable
• In 2017, the Inland Empire metro area will gain approximately 52,000 new inhabitants, a 1.2% increase since last year. With an annual job growth rate of 2.9%, demand is growing, driving rents to new highs.
• The average rent in Riverside-San Bernardino-Ontario Metro hit $1,377 up 5.1% year-over-year
Who's driving the rise of renting? Well, millennials and baby boomers alike. “Lifestyle changes, a housing-stock shortage and high homes prices have led to more people than ever—of all ages—choosing to rent an apartment rather than buy a home,” says Doug Ressler, senior analyst at Yardi Matrix.
Story Date: July 25, 2017