Inland Empire Grapples with Growing Housing Affordability Concerns

For many years, the Inland Empire has been recognized as one of Southern California’s prime real estate areas. As development in coastal regions slowed down, Riverside and San Bernardino counties experienced a surge in new housing developments, offering significantly lower prices compared to coastal communities. The downside involved longer commute times and higher temperatures.

However, a new report from the Public Policy Institute of California indicates a growing concern about housing affordability in the Inland Empire. This organization evaluates California’s political landscape periodically, identifying key issues for residents. Its 2020 report highlighted coastal communities like L.A. and the Bay Area as places where housing affordability was a major concern. Now, San Bernardino, Riverside, and Kern counties also report similar challenges.

In each of these counties, over 60% of residents cited housing affordability as a serious issue. East San Bernardino County saw a 17% increase compared to the 2020 survey, West Riverside County had a 12% increase, and Kern County experienced a 22% rise.

Eric McGhee, who authored the report, attributed the rising stress to migration patterns. During the pandemic, thousands left L.A., Orange, and San Diego County for the relatively less expensive 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 in the Inland Empire face more limited choices than coastal migrants. They are already in an affordable area and thus faced with fewer alternatives. They may move out of state, seek roommates, become homeless, or accept the increased housing costs.

The financial stress seems justified. Since the start of 2020, the median home value in L.A. County increased by 35%. During the same period, median home values rose 48% in San Bernardino County and 50% in Riverside County, according to Zillow. The median rent for a one-bedroom apartment in the Riverside-San Bernardino metro area rose by 50% over four years, reaching $1,959 in 2023.

Joseph Huelskamp, a real estate agent in Riverside, explained that coastal buyers are moving into the Inland Empire. Earlier this year, he sold a home in Hemet to a family working in San Diego, facing a two-hour commute.

“Most sellers are at retirement age and relocating out of state,” Huelskamp said, noting that elderly people on fixed incomes are the most affected by rising rents.

Huelskamp mentioned that many renters are maintaining their lower-cost, rent-controlled apartments because moving would lead to unaffordable market rates. He recounted an instance where a tenant paying $1,700 per month left, and the landlord rented the unit for $3,500.

The frustration is evident online. In a Reddit discussion about expensive rent in the Inland Empire, users expressed dissatisfaction. One user reported spending $2,800 on rent, attributing the cost to people moving from Orange County and L.A.

While housing affordability in some L.A. areas saw a decline according to the PPIC study, the Inland Empire’s prices continued to climb. Median rents in L.A. have largely remained stable, dropping earlier this year to a four-year low.

Historically, the Inland Empire had lower housing prices and rent compared to places like L.A., Orange County, and San Diego. The trade-off included longer commutes and distance from major city centers. Jobs in logistics have increased but often don’t pay enough for home ownership.

During the pandemic, population growth in San Bernardino and Riverside counties increased due to lower prices and new housing developments. The PPIC survey reflects ongoing concerns about affordability, highlighting that only 31% of households can afford a median-priced home.

Census data indicates that over 41% of households in both counties are burdened, spending more than 30% of their income on housing. Nationally, homeowners spend 21.4% and renters 31% of their income on housing.

A Reddit user in Corona described spending around 50% of their paycheck on renting, expressing dissatisfaction yet appreciating their location.