For generations, the Inland Empire in Southern California was known for affordable real estate. Due to slower development in coastal regions, Riverside and San Bernardino counties experienced housing growth at lower costs compared to coastal areas. However, affordability concerns are rising.
Growing Housing Concerns
A report from the Public Policy Institute of California shows affordability is now a significant issue in the Inland Empire. This think tank examines California’s political geography to identify the primary concerns of residents. Previously, coastal areas like L.A. and the Bay Area led in concerns over housing costs. Now, San Bernardino, Riverside, and Kern counties face similar challenges.
More than 60% of people in these counties view housing affordability as a major problem. East San Bernardino County reported a 17% increase in concern compared to 2020, while West Riverside County saw a 12% rise. Kern County experienced a 22% increase.
Impact of Migration Patterns
Eric McGhee, the report’s author, attributes the stress to migration patterns. During the pandemic, many left L.A., Orange, and San Diego counties for San Bernardino and Riverside, seeking cheaper housing.
“People who can’t afford the Bay Area or L.A. move to the Inland Empire for generally cheaper housing,” McGhee explained. This causes residents with higher incomes to bid up prices in lower-income areas.
Inland Empire residents have limited options compared to coastal migrants. Moving somewhere cheaper isn’t easy since they already reside in a relatively affordable area. They often face choices like relocating out of state, sharing living space, or facing homelessness.
Significant Price Increases
Price increases in the Inland Empire surpass those in L.A. Since early 2020, median home values rose 35% in L.A. County, but jumped 48% in San Bernardino County and 50% in Riverside County. The median rent for a one-bedroom apartment in the Riverside-San Bernardino metro area increased from $1,306 in 2022 to $1,959 this year, marking a 50% rise in four years.
Buyers and Renters Dilemma
Joseph Huelskamp, a real estate agent in Riverside, highlights this dilemma. Traditionally, people bought homes when it was cheaper than renting. Now, both mortgage and rent costs are rising, causing anxiety.
“Coastal buyers are moving further into the Inland Empire,” he said, noting a family commuting from Hemet to San Diego.
Sellers, often retirees, relocate out of state due to rising rents affecting those on fixed incomes.
Renters hold onto cheaper, rent-controlled apartments because the current market rates are unaffordable. Huelskamp shared a story of a tenant paying $1,700 per month, only for their unit to rent for $3,500 after they left.
Online Frustration
Online discussions reveal frustration with rising costs. Users blame increased rent on migration from Orange County and L.A. Some say rent has more than doubled in ten years, with minimal benefits compared to cities like L.A.
Meanwhile, housing affordability issues eased slightly in some L.A. regions. PPIC data showed a decrease in concern: 2% in coastal L.A. and 6% in central L.A.
Shifting Dynamics
The Inland Empire traditionally offered lower prices compared to coastal areas due to longer commutes and greater distance to city centers. The logistics economy contributed to job growth, but wages often fell short of supporting home purchases.
During the pandemic, cheap housing drew people to San Bernardino and Riverside counties. A 2022 UC Riverside study indicated only 31% of households could afford a median-priced home.
Census data shows over 30% of income spent on housing categorizes a household as burdened. Nationally, homeowners spend 21.4% of income on housing, while renters spend 31%. In 2024, data showed over 41% of households in San Bernardino and Riverside were burdened.
A Reddit post noted, “I spend about 50% of my paycheck on rent in a Corona duplex, but I like where I live.”