Job & Population Growth Continues In The IE
The Inland Empire remains one of the Top 5 big metros for job and population growth. The IE’s net-in migration of over 30,000 puts it at number 5 in the country. This trend began over ten years ago and the data shows no indication that the growth rate will slow. Several factors are fueling this trend, including employment growth in a variety of sectors and unfavorable housing prices in nearby markets. Apartment and housing developments are not keeping pace with this rapid growth, causing a shortage. The lack of available housing makes people more willing to pay more in rent in order to be close to work. Let’s look at the driving factors a little closer.
Employment growth in all 21 major business sectors, especially in manufacturing.
An estimated 22,000 job openings in manufacturing will be created in the next decade. That is 3x the state average and 2x the national average. Other high-growth sectors include healthcare and social assistance, construction, and professional, scientific, and technical services.
The population mix is young, making for a strong pipeline of workers and trainable job-seekers.
The working-age population is expected to grow at an annual rate of about 0.6 percent, double the projected statewide annual rate of 0.3 percent.
Housing prices are significantly cheaper than nearby markets.
Many of the people moving to IE are coming from the LA area, where housing prices are about 40% higher. The average rent for an apartment in LA is over $2,500. It is becoming increasingly difficult to make ends meet in many places, but it is particularly difficult in LA. People are looking for more space and more affordable rates so they can save money or spend it on other things.
All of this data reveals a fantastic opportunity for multifamily real estate investors. These new residents need somewhere to live and as single-family housing prices sore, many will look at multifamily housing as a more affordable alternative. SDC Ventures has investment opportunities for current and upcoming apartment developments in the IE. If you are interested in learning more, contact us.
