SoCal Renters Head to Inland Empire
The Inland Empire, and specifically Riverside, is attracting Los Angeles and Orange County residents with lower cost rents.
“On a local level, there’s a clear shift toward the Inland Empire. Riverside County is receiving on average 41 new residents per day,” Matt Kaufman, research analyst at JLL, tells GlobeSt.com. “The Inland Empire is a significantly more affordable option for Southern Californians. Rents in the market for a one-bedroom apartment are 29% less than Los Angeles and 40% less than Orange County. This coupled with growing number of industrial jobs in the area has made the Inland Empire fertile ground for residents looking to set down roots.”
Increasing costs of apartment rent is driving this migration trend, but it also has long-term consequences. “Rent burdening serves as a major deterrent for potential home ownership,” says Kaufman. “Residents who are putting half of their income toward rent, simply do not have room in their budgets for investments or savings, which are the primary tools for amassing a down payment.”
It isn’t only Inland Empire that is gaining residents. Lower cost states like Texas, Arizona and Colorado are also seeing a rise in population. “It becomes more challenging to trace those migration patterns once a resident leaves that state,” says Kaufman. “However, as previously stated, most of the current and future growth within the United States is occurring in major cities in the middle of the country.”
Many California residents are finding it necessary to move to emerging markets within the state and outside of the state. “For many, especially young professionals or working-class citizens, leaving California might be their only opportunity to buy a home,” says Kaufman. “This would mean major loss of talent within the labor pool and would serve as a problem for local business and a deterrent for any future businesses.”
While people are moving out of the Southern California region, job diversity will keep a lot of residents close by. As a result, migration out of the area has been specific to certain industries. “Los Angeles business sectors like entertainment, media and technology are more likely to retain their needed talent given that they are unique industries within the region and can attract people from outside the state,” says Kaufman. “Blue Collar industries and any other business that is not unique to Los Angeles would have a much harder time retaining talent and might be driven out of state or out of business.”