Inland Empire California Sees Biggest Inventory Jump

Home inventory in California's Inland Empire region, covering the Riverside and San Bernardino counties metropolitan area, rose 41% year-over-year in March, the largest increase among major California metros. Active listings reached 9,862 at the end of the month, up from 6,990 in March 2025, per California Regional Multiple Listing Service data.

The inventory surge comes as the Inland Empire faces a combination of softening demand and investor disposals. The region had been among the hottest California submarkets during the pandemic era, as commute-flexible workers pushed out from Los Angeles and Orange County to cheaper single-family stock. Much of that demand has moderated as return-to-office pressures firmed.

"The Inland Empire became the pandemic-era pressure valve for coastal California, and some of that demand has retraced," said Jordan Levine, chief economist at the California Association of Realtors. Levine said the region's transaction pace stood at 18% below the 2020-2022 average, while inventory above the pre-pandemic benchmark reflected both new listings and investor selling.

The median home price in the Inland Empire stood at $592,000 in March, up 1.8% year-over-year. The modest appreciation, below the statewide California figure, reflects the softer demand. Coastal California metros including Orange County and San Diego posted year-over-year gains of 4.6% and 3.9% respectively during the same period.

Commute patterns have reversed modestly from pandemic peaks. Bureau of Labor Statistics commute-pattern estimates showed the share of Los Angeles and Orange County workers commuting from Inland Empire counties declined to 14% in 2024 from 18% in 2022, as more workers either moved back toward employer locations or shifted to employment within the Inland Empire itself.

The investor pullback has been particularly visible in the entry-level single-family segment. Invitation Homes and AMH together held approximately 8,400 single-family rental units in Riverside and San Bernardino counties combined at the end of 2024. Both operators disclosed Q1 2026 net dispositions in the Inland Empire as part of broader portfolio optimization.

Commercial logistics real estate, historically an Inland Empire stronghold, has also shown softness. Industrial vacancy in the Inland Empire reached 7.8% in Q1 2026 per Colliers, up from 4.2% a year earlier. New logistics construction that delivered during 2024 and 2025 has taken longer to lease than initially projected.

The inventory expansion is beginning to provide buyers with negotiating leverage. Redfin data showed 32% of Inland Empire homes sold below list price in March, compared with 21% a year earlier. Days on market extended to 44 from 33. Realtor Sandra Martinez of Century 21 Award in Riverside said "buyers here are asking for credits and repairs that were completely off the table in 2022," with contingency waivers becoming rare.