Inland Empire apartment prices climb higher

By: WYATT HAUPT - Staff Writer | Wednesday, January 19, 2005 9:54 PM PST ∞

Average monthly rents for apartments in the Inland Empire rose faster than any other region in the state in the three months ended Dec. 31, an industry report shows. Meanwhile, multifamily units in Murrieta and Temecula ranked among the highest priced in Riverside County.

The average rent for an apartment in Riverside and San Bernardino counties increased 6.6 percent to $1,012 in the fourth quarter ended Dec. 31, compared with $949 in the fourth quarter ended Dec. 31, 2003, according to data compiled by RealFacts.

Caroline Latham, chief executive officer of the Novato-based research firm, said that the inland multifamily housing scene is the strongest in the state, largely a result of the mass of people who move to the region annually.

An estimated 57,739 moved to Riverside County in 2003, the California Department of Finance said. At the same time, a total of 44,421 people moved to San Bernardino County. Figures for 2004 were not yet available.

"We follow 35 markets carefully and (the Riverside and San Bernardino market) is the only one where rents have increased more than 5 percent in the last year," Latham said.

Despite that increase in apartment rents, the two-county region notched a 95.3 percent occupancy rate in the same period, RealFacts reported. That represented a slight decrease from 96.1 percent in the three months ended Dec. 31, 2003.

Analysts say an occupancy rate of 95 percent or higher is a sign of a healthy market and a benchmark landlords strive to achieve.

In Southwest County, the average rent for an apartment in Murrieta increased 5.3 percent to $1,135 from $1,078 in the same period a year earlier. In Temecula, the average rent was up 4.5 percent to $1,044 in the three months ended Dec. 31 from $999 a year earlier.

Inland Empire economist John Husing said the uptick in apartment prices in the quarter was the result of numerous factors, including supply and demand.

"The fact that rents here are less expensive than the coastal markets has something to do with it, too," Husing said.

Of note, the average rent for an apartment in neighboring San Diego County climbed 3.3 percent to $1,210 in the same period. RealFacts' findings are based on cities with at least five apartment communities. Figures for the rest of Southwest County and unincorporated portions of San Diego County were not available.

Contact staff writer Wyatt Haupt at (951) 676-4315, Ext. 2615, or whaupt@californian.com.