Riverside-San Bernardino apartment sector records lowest vacancy rate in the U.S.

The Riverside-San Bernardino apartment market in Southern California has the lowest vacancy rate in the nation, according to a new report from Marcus & Millichap.

The report notes that the Riverside-San Bernardino apartment sector outperformed nearly every major rental market during the pandemic. From July 2020 to June 2021, vacancy compressed 200 basis points to below 2 percent and the metro recorded the second-fastest rent gain nationally. The formation of 26,300 households propelled this strong performance, as more people sought lower housing costs in the region during the pandemic.

This comes as median home prices surged 32 percent in the past year, expanding the barrier to homeownership.

“While the Inland Empire is unlikely to sustain the downward vacancy trajectory from the past year, the limited number of available rentals will position the metro to end this year as the nation’s tightest apartment market,” noted Marcus & Millichap.

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