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.
The new Inland Empire Regional Intelligence Report also examines employment, wages, business activity, and commercial real estate in the region.
View the Center's press release:
View the Center's Inland Empire Regional Intelligence Report: