The Inland Empire's housingmarket is on fire. Thanks to housing affordability issues plaguingSouthern California, the Inland Empire has seen strong populationgrowth and housing appreciation. In fact, some submarkets in theInland Empire have seen the strongest housing appreciation in thecountry.

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"The Inland Empire's strong job market now enables people tolive in far-eastern cities like Victorville and Twenty-Nine Palms,whereas before, these residents would have been forced to commuteinto Los Angeles and Orange County for work," MattKaufman, research analyst at JLL, tellsGlobeSt.com. "Therefore, it is no surprise that these are the areasin the Inland Empire where we are seeing some of the greatestappreciation, now that living there has become much more suitableand sustainable."

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The pricing appreciation stems from an amalgam of factors, fromeconomic and job growth to new construction. "The Inland Empire isthe fastest growing region within the state and ranks among the topgrowth areas nationally," says Kaufman. "Inland Empire developershave responded to this massive growth with a new wave of homeconstruction. In 2018, San Bernardino and Riverside Counties sawthe highest number of under construction homes since 2008. Thatwave of new product has helped drive up the regions' median homeprice which is partly why we are seeing such high homeappreciation. Furthermore, job growth in the Inland Empire has madea profound impact of home pricing particularly in and around theregion's most remote cities."

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Even better, the Inland Empire is only in the beginning of itsrun. Kaufman expects the growth to continue into 2020. "In theshort term, the Inland Empire should continue to grow," he says. "Ahealthy job market and an affordable housing market have provenenough to drive rent-burdened Los Angelinos eastward. It isdifficult to envision that dynamic changing significantly withinthe next few years."

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That doesn't mean that the Inland Empire isn't going toexperience bumps in the road, especially in the long term. "BabyBoomers represent one of the largest groups of homeowners in theU.S. As the youngest members of this generation enter retirementage, it is likely that these homes will be made available in thefuture," says Kaufman. "That uptick in available supply might causesome to reconsider leaving Los Angeles for the Inland Empire as theincrease in supply would drive prices downward, pricing Angelinosback into the market."

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.