The Riverside-San Bernardino apartment market has the lowest vacancy rate in the US, according to new research from Marcus & Millichap. From July 2020 to June 2021, the vacancy rate fell 200 basis points, falling below 2%. Plus, the firm forecasts that the vacancy rate will fall another 30 basis points this year.

The strong vacancy rate supports double digit rent growth. Already, the market has the second fastest rent gain nationally, and the report anticipates rents will increase 11.2 % by the end of the year.

It is of no surprise that inward migration and population growth are driving the strong market fundamentals. According to the report, 26,300 new household were formed even has home prices in the market surged 32%. The dynamic has pushed many people into the rental apartment market. Population growth along with limited apartment supply will likely keep this the tightest apartment market in the country by the end of the year.