Economic Outlook

The Inland Empire is leading Southern California in post-pandemic job growth, outpacing the national average with an impressive 8.6% increase—adding over 136,000 jobs. Unlike the slowing job growth seen across the country in 2024, the Inland Empire is defying the trend.

While payroll growth in 2023 was 1.6%, lower than the region's 10-year average of 3.4%, the pace is picking up again and slightly surpassing the national average. The area's job growth forecast continues to outperform the nation, thanks to strong momentum over the past decade. Although the market is becoming more expensive, it remains relatively affordable, offering a competitive edge. Several commercial real estate projects in development will also create space for more job opportunities.

The region's post-pandemic job surge has been driven largely by growth in transportation and warehousing, fueled by e-commerce and industrial space development. Employment in these sectors has grown nearly 30% from pre-pandemic levels, reaching over 200,000 workers, though it's still below its 2022 peak. Wholesale trade employment has seen similar trends.

With ample, affordable land near Southern California's twin ports, the Inland Empire has become a hub for national retailers’ warehouse and distribution centers. Third-party logistics providers have also expanded to meet the rising demand for e-commerce. The twin ports process about a third of all U.S. imports, much of which is transported inland by rail and highway. In 2024, imports are rebounding as dock workers reached a new labor agreement.

Amazon continues its rapid expansion in the region. Since opening its first California fulfillment center in San Bernardino in 2012, the company now operates over 40 industrial facilities across the Inland Empire, employing around 30,000 people locally—making it the area’s largest public employer.

With 4.7 million residents, the Inland Empire is the 11th-most populated metro area in the country. Employment levels are slightly lower due to the region's significant retiree population. Attracted by the warm weather and affordability, retirees have created a strong demand for healthcare services and medical-related real estate.

Tourism also thrives in the area, with hotspots like Palm Springs, Big Bear, and Temecula drawing primarily in-state visitors.

Major cities are concentrated along Interstate 15, which connects to Las Vegas, and Interstate 10, which spans eastward across the southern U.S. Riverside, with a population of over 310,000, is the largest city in the Inland Empire, followed by San Bernardino, Fontana, and the rapidly growing Moreno Valley, each with over 200,000 residents.

Spanning over 20,000 square miles, San Bernardino County is the largest in the continental U.S., stretching from Los Angeles to the borders of Nevada and Arizona. Riverside County adds another 7,200 square miles, making the Inland Empire a vast and diverse market area.

Source: CoStar Research