Affordable Inland Empire? Fewer Than One-Third Of Inland Empire Households Can Afford To Buy A Home In One Of Southern California’s ‘Most Affordable’ Housing Markets.
 

Throughout the pandemic the Inland Empire’s relatively affordable housing market has been a bright spot in the local economy, and home price growth has outpaced more expensive neighboring areas. That affordability, however, has diminished in the face of today’s higher mortgage rates and in the context of elevated demand and extraordinarily high-priced markets across the state.

Today, only 31% of local households can afford to purchase a median-priced home in the Inland Empire, a decrease from a relatively low 39% in the first quarter of 2021. Still, the region remains one of the most affordable in all Southern California and is more affordable than the state as a whole, where just 24% of households can afford a median-priced home.

“Honestly, this is what affordability looks like in California,” said Taner Osman, Research Manager at the UCR School of Business Center for Economic Forecasting & Development. “Housing prices are at the crux of the state’s famously high cost of living and are out of reach to the majority of the population as lack of supply enduringly and severely lags demand.”

The contrast with the nation overall, where 45% of households can afford median-priced homes, is stark. This comparison highlights the pressure California residents face relative to most Americans, where the dream of homeownership is still achievable for nearly half of households across the country. For Inland Empire households, that figure is far smaller, and affordability continues to erode as interest rates remain elevated and prices hold firm.

The Inland Empire Regional Intelligence Report, which provides the source for these findings, places the affordability issue in a wider economic context. Alongside housing data, the report also tracks trends in employment, wages, business activity, and commercial real estate throughout the region. By examining housing affordability together with labor market outcomes, the report underscores the interconnection between income growth and the ability to purchase or rent housing locally.

The Inland Empire has been a key destination for residents moving outward from Los Angeles and Orange Counties, where home prices are considerably higher. This migration has supported population and business growth but has also added new pressure to the local housing market. As more households compete for limited inventory, prices rise, further constraining affordability.

At the same time, the region’s employment base has grown, with gains in logistics, health care, and service industries. Wages, however, have not kept pace with the rapid increase in housing costs. The combination of modest wage growth and persistent home price appreciation leaves many families priced out, even in what is considered one of the state’s most affordable regions.

Commercial real estate trends also provide insight into the broader economy. Demand for industrial space has remained strong, reflecting the Inland Empire’s position as a hub for warehousing and logistics. This economic strength has supported local businesses and jobs but has not translated into the construction of sufficient housing to meet growing demand. Without a significant increase in supply, the mismatch between what households earn and what homes cost is unlikely to resolve.

The findings of the report point to a broader challenge for policymakers, business leaders, and residents alike. Ensuring that the Inland Empire continues to provide opportunities for upward mobility will require addressing the housing shortage directly, whether through new construction, zoning reform, or incentives for development. While the region remains more affordable than other parts of Southern California, the steady decline in affordability is a warning sign that even traditionally lower-cost markets are increasingly out of reach for many families.

The Inland Empire Regional Intelligence Report makes clear that affordability is not simply a housing issue but a regional economic concern with implications for long-term growth, workforce stability, and community well-being.