Inland Empire Faces Growing Housing Affordability Issues

For many years, the Inland Empire has been a preferred choice in Southern California due to its affordable real estate options. As coastal areas saw slower development, places like Riverside and San Bernardino counties prospered with new housing projects priced lower than their coastal counterparts. However, longer commutes and hotter climates were trade-offs. Recently, concern over housing affordability is rising in the region.

Report Findings on Housing Concerns

A recent report from the Public Policy Institute of California highlights affordability issues across the Inland Empire. The institute surveys California’s political geography regularly to identify top concerns among residents. In 2020, residents in coastal areas such as Los Angeles and the Bay Area were the most worried about housing costs. Now, regions like San Bernardino, Riverside, and Kern counties share similar concerns.

More than 60% of survey participants from these counties identified housing affordability as a major issue. East San Bernardino County experienced a 17% increase compared to the 2020 survey. Similarly, West Riverside County saw a 12% rise, and Kern County reported a 22% escalation.

Migration Impact on Housing Prices

Eric McGhee, the researcher behind the report, links the changing stress levels to migration patterns. During the pandemic, large numbers migrated from areas like Los Angeles, Orange County, and San Diego to places like San Bernardino and Riverside counties.

“People who can’t afford to live in the Bay Area or L.A. can move somewhere else, like the Inland Empire, where housing is generally cheaper,” McGhee said. “But that leads to people with higher incomes moving to areas with lower incomes and bidding up housing prices.”

Residents of the Inland Empire have fewer alternatives compared to migrants from coastal areas. Options are limited to moving out of state, living with roommates, facing homelessness, or enduring increased housing costs.

Inland Empire housing price increases are surpassing those in Los Angeles. Since 2020, median home values in L.A. County have risen by 35%. Meanwhile, during the same period, San Bernardino County saw a 48% increase, with Riverside County up by 50%, as noted by Zillow. The one-bedroom apartment median rent in the Riverside-San Bernardino metro area jumped from $1,306 in 2022 to $1,959 this year, marking a 50% climb over four years.

Market Responses and Social Insights

Joseph Huelskamp, a Riverside real estate agent, acknowledges growing anxiety. Coastal buyers are increasingly drawn to the Inland Empire. He cites an example of a Hemet home sale to a San Diego working family, involving a two-hour commute.

“Most sellers are at retirement age, and they’re relocating out of state,” Huelskamp said, pointing out fixed-income elderly sellers facing rising rents.

A significant number of renters choose to stay in rent-controlled spots for years. Huelskamp notes cases where tenants paid $1,700 monthly, and upon vacating, the unit was rented for $3,500.

Online frustration is evident. Discussions on platforms like Reddit reveal opinions among residents paying increased rents. Feedback is linked to migration trends from Orange County and L.A. One user spends $2,800 on rent and sees newcomers as responsible for hikes. Another resident laments spending $1,350 for a Redlands studio, questioning the benefits compared to neighboring regions.

Study Insights and the Housing Landscape

The PPIC study reveals slight decreases in coastal L.A. concerns, with a 2% reduction in the coastal region and a 6% dip in central L.A. compared to 2020.

Although inland traditionally offered cheaper housing options due to distances from city hubs, logistics jobs increased during economic surges, not sufficiently covering housing costs. Pandemic-driven migration boosted population growth in counties like San Bernardino and Riverside, supported by new housing developments and cheaper prices.

A 2022 UC Riverside study indicated 31% of Inland Empire households can afford a median-priced home. Census data reflects burdened households spending over 30% of income on housing nationally, with median homeowners at 21.4% and renters at 31%. In 2024, more than 41% of households in San Bernardino and Riverside County faced financial burdens.

Despite the challenges, some residents are committed to remaining in the region. A Corona resident on Reddit spends around 50% of earnings on rent, sharing, “It sucks, but I like where I live.”