The Inland Empire multifamily market has been very dynamic for the year ending in Q2 2018, for both development and demand. Completions and absorption levels were mostly balanced, with 513 units and 417 units, respectively.
With new supply, the vacancy rate of 3.6% stayed flat from a year ago (but decreased by 40 basis points from Q1).
In Q2 2018, the average monthly effective rent of $1,494 reacheda new record level and was up by 4.5% from the prior year (one of the highest rent growth figures in the U.S.).
Multifamily asset acquisitions reached $206.4 million in Q2 2018, reflecting a year -over-year decrease of 36.3%. Even so, cap rates edged down 10 bps to 5.2% from Q1 2018, to historical lows with stability projected through H2 2018, according to CBRE’s North America Cap Rate Survey.