Riverside is a dynamic and rapidly growing region in Southern California. Located in the heart of the Inland Empire, Riverside is known for its sunny weather and vibrant community. Riverside attracts a diverse range of tenants, from university students to young professionals and families. The rental market here is dynamic, but always trending upwards.
Riverside's Market Data for 2025:
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It is no secret that California is a higher-priced state to purchase rental property in. With that being said however, Riverside is still one of the most affordable places in the state to purchase a rental property. The counties that surround Riverside, such as L.A. or Orange County, have much higher priced properties when compared to Riverside. Below is the current data for Riverside’s Rental Market:
Riverside Investment Rental Property Fast Facts
Average Riverside Home Price: $661,349
Real Estate Appreciation Over Past 12 Months: 1.3%
Average Riverside Household Income: $90,000
Percentage of Riverside homes that are rental properties: 46%
Riverside Resident Median Age: 33.1 years
Poverty Level: 12.5%
Median Riverside Housing Rental Rates: $2,310
Riverside Rent Trends By Bedroom
Studio: $1,645
1-Bedroom: $1,775
2-Bedroom: $2,213
3-Bedroom: $2,957
The data provided suggests that Riverside is a lot more affordable than the other surrounding cities, such as L.A. or Orange County. What it also suggests however, is that the appreciation rate of Riverside is a lot lower than those previously mentioned cities. While this might not be the greatest news, investing in Riverside now, is a great long term investment due to the low price point that it offers.
Also, even though the appreciation rate may not be as high as L.A. or Orange County, it is still incredibly stable given the condition that the market is in. Riverside has seen a positive trend upwards in terms of appreciation rate, home price, and rent price every year since COVID.
Riverside's Economic Growth:
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Riverside’s economic growth has accelerated in recent years, transforming the city from a primarily agricultural community into a diversified regional hub anchored by education, healthcare, logistics, tourism, and innovation. This diversified foundation is expanding in both depth and breadth—making Riverside increasingly attractive to investors.
At the core of Riverside’s economic resurgence is University of California, Riverside (UCR). As the only R1 research institution in the Inland Empire, UCR has a substantial regional footprint. In 2022 alone, UCR generated an estimated $2.3 billion in annual economic impact, drawing over $200 million in research funding, and producing $5–7 million yearly in patent royalties. Beyond traditional academic functions, UCR has launched innovative initiatives like SoCal OASIS™, a multi-stakeholder innovation hub backed by over $60 million in public funding to foster clean-technology and sustainability startups. These efforts have not only produced local jobs but also attracted cutting-edge companies like Ohmio, which established its U.S. headquarters in Riverside to develop autonomous electric shuttles.
Parallel to academic-driven innovation is the steady expansion of healthcare and social services—Riverside County reported nearly 293,800 jobs in this sector as of November 2024, with major employers including Kaiser Permanente, Abbott, Optum, and Providence. Their expansion in telemedicine, diagnostics, and outpatient services has fueled high-wage job growth, reinforcing housing demand from skilled professionals.
Logistics and distribution have likewise become economic pillars. With its proximity to the Ports of Los Angeles and Long Beach and interchanges at I‑15, I‑60, and SR‑91, Riverside has become one of the Inland Empire’s most active logistics hubs. However, as the county absorbs some of California’s largest warehouse proposals—in fact, seven of the top ten proposed warehouse projects statewide are in Riverside County—concerns arise around infrastructure capacity and environmental impact . Despite these challenges, each new facility generates around 3,300 ancillary jobs and contributes roughly $51 million in local tax revenue.
Public-sector employment also remains strong. As the county seat, Riverside hosts major county offices, courts, and public agencies—the largest employer is Riverside County itself (24,399 employees), followed by March Air Reserve Base, UCR, Kaiser Permanente, and Riverside Unified School District. This stable, recession-resistant base provides economic insulation during downturns.
Finally, Riverside is cultivating a growing innovation ecosystem. Through programs like UCR’s InSoCal Accelerate Hub—launched with support from CalOSBA and UCR’s Office of Technology Partnerships—entrepreneurial infrastructure now supports inclusive clean-tech startups across the Inland Empire. Additionally, multiple regional incubators—such as Riverside ExCITE, Murrieta, Palm Desert iHub, and IE Tech Bridge—consistently attract new ventures in sectors ranging from ag-tech to biotech.
In summary, Riverside’s economic growth is not confined to one industry—it is a multi-sectoral expansion combining education-driven research, healthcare employment, logistics infrastructure, resilient public-sector jobs, and a nascent clean-tech innovation cluster. This diverse economic profile enhances resilience, increases tenant demand across income and demographic strata, and positions Riverside as a stable long-term real estate market for investors.
Riverside's Infrastructure Growth:
Riverside is rapidly evolving its infrastructure to support growth, improve transportation, and embrace sustainable technology—laying a strong foundation for real estate appreciation and renter attraction.
One of the headline projects is the 15/91 Express Lanes Connector, a $270 million upgrade that officially opened in November 2023. This critical link connects the toll lanes of I-15 and SR‑91, drastically reducing congestion and smoothing commuter traffic between Corona, Jurupa Valley, Eastvale, and Riverside. The completed connector enhances freeway efficiency, shortens commute times for thousands of workers, and supports reliable access for tenants traveling across county lines.
Regional plans under the Riverside County Transportation Efficiency Corridor (RCTEC) initiative are backed by $427 million from SB 132, targeting five key transportation improvements. This includes upgraded bridges, highway enhancements, railroad grade separations, and interchanges—including the 15/91 Connector. These public investments are driving better traffic flow, reducing environmental impact, and generating construction employment.
In addition to highway improvements, Riverside is raising the bar in public transit. The Vine Street Mobility Hub near downtown and the Metrolink station opened in January 2024. This 4.5‑acre transit center integrates bus, bike, ride-share, and commuter rail options—offering 16 bays, real-time information displays, EV charging, solar panels, drought-tolerant landscaping, and a safer pedestrian layout. It addresses the “first‑mile/last‑mile” challenge for downtown and UCR-area residents, enhancing connectivity and boosting walkable property demand.
RTA’s ambitious public‑transit electrification push adds cutting-edge mobility elements. The system is piloting Ohmio all‑electric, autonomous shuttle buses set to launch in early 2025, a first in the U.S. These shuttles, backed by $2.5 million in public funding, will be operated and maintained by RTA, with safety operators onboard during initial service. Additionally, RTA has contracted Clean Energy to build a hydrogen fueling station and operate hydrogen‑fuel‑cell buses—five initially, expanding to over 100 within a decade—making Riverside a trailblazer in zero‑emission transit.
Rail infrastructure is also getting a boost. The 91/Perris Valley Metrolink line is undergoing double-tracking between Moreno Valley and Perris, thanks to a $15.5 million state grant for increased capacity. Future plans include infill stations in Mead Valley (opening in late 2025) and extensions, which will enhance regional rail viability and offer new transit-adjacent investment opportunities.
Adding another layer, the proposed Mid-County Parkway will span 16 miles from Perris to San Jacinto, opening new areas for development and easing east–west flows. Construction of initial segments has begun, including interchange upgrades already in use.
Together, these projects—freeway connectors, transit hubs, autonomous shuttles, hydrogen infrastructure, rail expansion, and freeway construction —demonstrate Riverside’s strategic commitment to infrastructure growth. For real estate investors, this translates into long-term asset appreciation, improved tenant accessibility, and stronger neighborhood desirability—especially within walking and biking distance of upgraded transportation nodes.
Crime and Homelessness Rates in Riverside:
When evaluating safety in Riverside, it's crucial to consider both citywide data and neighborhood-level trends. Here's a detailed look at the current landscape:
Crime Rates:
Based on 2023 data, Riverside recorded approximately 516 violent crimes and 3,241 property crimes per 100,000 residents. In context, this is significantly higher than the national averages of roughly 370 violent and 1,955 property crimes per 100,000 . Overall, Riverside’s total crime rate is elevated—about 1.6 times the national average .
Lately, however, Riverside has seen improvements. A city report from January 2025 highlights a 15.6% drop in robberies, 30.2% decline in burglaries, and a 22% reduction in vehicle thefts from 2022 to 2023. Homicide numbers remained steady at 11, down from 26 two years earlier . These reductions suggest that proactive policing and community engagement are yielding positive results.
Neighborhood Hotspots:
Crime is not evenly spread across the city; some areas experience much higher rates:
High-risk areas include Downtown, Eastside, Arlanza, and Casa Blanca. These neighborhoods often report crime rates between 45–60 incidents per 1,000 residents, driven by property crime and petty theft .
Lower-crime neighborhoods like Canyon Crest, Orangecrest, La Sierra Acres, and Alessandro Heights consistently report rates 40–60% below Riverside’s citywide averages.
Residents note that the most common crime incidents include vehicle break-ins and opportunistic theft, especially near nightlife and commercial areas downtown. Suburban areas and gated communities experience far fewer incidents.
Homelessness Rates:
Riverside County’s January 2025 Point-In-Time count identified 3,990 individuals experiencing homelessness—a 7% increase from two years ago, with most growth in sheltered rather than unsheltered populations. Crucially, the unsheltered population decreased by about 19% thanks to expanded shelter capacity.
Within the city of Riverside, approximately 614 unsheltered individuals were reported—similar to 2023 figures. Encampments are visible under freeway overpasses, near the Santa Ana River, and in specific downtown corridors. However, the city has invested in outreach, navigation centers, and increased shelter beds—endeavors that are starting to show measurable traction.
Summary and Insight:
Crime: Riverside’s rates are higher than U.S. averages, especially for property crime (vehicle theft, burglary). However, recent drops in key categories show that the city is making strides through improved policing and community programs.
Homelessness: While still present, visible homelessness has decreased due to shelter expansion and social interventions. Progress is ongoing but measured.
Where to Be Cautious: Downtown, Eastside, Arlanza, and Casa Blanca are the main hotspots for both street-level crime and homelessness. These areas have higher foot traffic, nightlife venues, and lesser-income households.
Where It’s Safer: Suburban neighborhoods such as Canyon Crest, Orangecrest, La Sierra Acres, and Alessandro Heights tend to have significantly lower crime and fewer social concerns.
In summary, Riverside has safety challenges, particularly in certain areas, but it’s not unsafe as a whole. With targeted investment and attention to neighborhood-specific data, it remains a viable market where prudent choices can minimize risk.
Pro's and Con's of Investing in Riverside:
When evaluating a market like Riverside for rental property investment, it’s essential to take a balanced, strategic look at the opportunities and potential pitfalls. While no real estate market is without risk, Riverside offers several strong advantages that make it attractive for certain investor profiles—particularly those seeking long-term, income-generating assets. Below is a breakdown of Riverside’s core strengths and weaknesses as a rental investment market.
The Pros
1. High and Stable Rent Prices
One of Riverside’s biggest draws for landlords is its robust rental rates. As of 2025, the city’s median rent sits around $2,310 per month, with three-bedroom homes renting for nearly $3,000. These figures are not only high relative to Riverside’s home prices but also relatively stable year-round. Unlike highly seasonal markets or those dependent on tourism, Riverside’s steady tenant demand means fewer dramatic fluctuations, allowing landlords to maintain consistent cash flow.
2. Larger Rental Market than Surrounding Cities
Nearly 46% of all housing units in Riverside are rental properties—an unusually high proportion for a mid-sized California city. This reflects a deep tenant pool composed of university students, healthcare workers, logistics employees, and families. Compared to neighboring cities like Norco, Eastvale, or Loma Linda, Riverside’s sheer size and rental density make it a more liquid market with better turnover and more consistent demand.
3. Ongoing Population Growth and Infrastructure Investment
Riverside is not standing still. The city’s population continues to grow, driven by migration from more expensive parts of Southern California. Ongoing infrastructure projects—like freeway expansions, Metrolink improvements, and downtown revitalization—further increase the city’s attractiveness. These public investments tend to improve livability, reduce commute times, and boost property values over time.
4. Strong Demand from Commuters and Local Workers
Strategically located between Los Angeles, Orange County, and San Bernardino, Riverside attracts thousands of commuters who work in those areas but seek more affordable housing. Additionally, local employment hubs—like the University of California, Riverside, Riverside Community Hospital, and Amazon distribution centers—ensure strong housing demand from a stable base of tenants.
The Cons
1. Slower Appreciation Rates
Riverside doesn’t offer the rapid home-value growth of markets like Los Angeles or San Diego. Appreciation over the past 12 months was just 1.3%, which may not be appealing to investors banking on equity gains alone. This is primarily a cash-flow market.
2. Economic Disparities and Crime in Some Areas
While many neighborhoods are stable and well-maintained, others face higher crime rates and economic challenges. Areas like Eastside and Arlanza require careful due diligence. This can increase turnover and maintenance costs for landlords if not properly managed.
3. Limited Luxury Market
Investors looking to develop or flip high-end homes may find limited demand in Riverside. The city’s buyer and renter base tends to favor mid-range, affordable homes, leaving little room for luxury real estate to thrive.
4. Growing Competition
As more investors look inland for affordable opportunities, Riverside has seen increased buyer activity. This can drive up acquisition prices and compress cap rates, especially for turnkey or multi-family units.
Overall, Riverside’s pros tend to favor long-term, yield-focused investors who are comfortable with moderate appreciation and who invest with a management strategy that accounts for neighborhood-specific risks.
Who Should Invest in Riverside:
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Riverside offers a unique opportunity for certain types of investors, especially those looking for stable, long-term cash flow without the volatility of coastal markets. Understanding the ideal investor profile for Riverside is key to determining whether it’s the right place for your investment strategy. Here’s a breakdown of who stands to benefit most from investing in this Inland Empire city.
1. Buy-and-Hold Investors
Riverside is a solid market for buy-and-hold investors who are looking to accumulate wealth over time through steady rental income and modest appreciation. The city’s relative affordability compared to neighboring coastal cities makes it a strong candidate for those who want to avoid the sky-high prices of Los Angeles, Orange County, or San Diego. With rent prices holding steady and population growth continuing, buy-and-hold investors can enjoy reliable cash flow while the market gradually appreciates over the long term. The city’s diverse rental market—serving university students, families, and logistics workers—ensures that tenant demand remains high.
2. Cash Flow-Focused Investors
Investors who prioritize cash flow over rapid appreciation will find Riverside particularly appealing. With a relatively low price-to-rent ratio (around 24:1), Riverside provides higher rental yields compared to many coastal markets, where that ratio can exceed 30:1. This means you’re more likely to cover your mortgage, taxes, and other costs with rental income. Properties in Riverside tend to offer reliable income streams without the high upfront costs found in nearby cities. Those looking for an affordable way to gain exposure to Southern California’s rental market will find Riverside a great option for building a portfolio focused on cash flow.
3. Out-of-State Investors
For out-of-state investors who are priced out of California’s coastal markets but still want to take advantage of the state’s booming economy, Riverside is an attractive alternative. The city’s more affordable entry prices provide a way to gain a foothold in Southern California without having to deal with the inflated prices and stiff competition of cities like Los Angeles or San Diego. The growing job market, expanding infrastructure, and proximity to major freeways make Riverside a smart place to invest for those who want exposure to the California economy without the massive capital outlay required in the coastal areas.
4. Diversification Seekers
Investors who already hold properties in other parts of the country or in high-appreciation markets might consider Riverside as an opportunity to diversify their portfolios geographically. With its combination of moderate risk and stable returns, Riverside offers a more predictable investment environment compared to higher-risk markets. It provides an ideal location for spreading risk, especially for those holding assets in booming, yet potentially volatile, markets.
5. Hands-Off Investors
For investors who prefer a more passive approach, Riverside is also a good option. The city's broad rental demand, strong tenant base, and low competition in certain property types make it an ideal market for those who rely on property management firms to handle day-to-day operations. Professionals like PMI Riverside can help ensure that investors maximize their returns while avoiding the hassle of on-the-ground management.
Overall Grade: B+
Riverside earns a B+ as an investment market. It offers strong fundamentals for buy-and-hold investors, a diverse range of tenants, and relatively affordable entry points for those priced out of coastal cities. While the city’s slower appreciation rates and certain neighborhood challenges may limit the upside for some investors, its stability, cash-flow potential, and ongoing infrastructure improvements make it a solid choice for long-term, income-focused investors. With careful property selection and effective management, Riverside can be a highly rewarding place to invest.
Final Thoughts:
Riverside, California, presents a dynamic and attractive opportunity for real estate investors in 2025. With its relatively affordable housing prices, steady population growth, and diverse economic and infrastructural developments, Riverside offers the promise of consistent cash flow and long-term value. It’s a city on the rise, with major projects enhancing its transportation and utility infrastructure, creating a strong foundation for future growth and tenant demand.
Despite its slower appreciation rates compared to coastal cities like Los Angeles or Orange County, Riverside’s steady rental market, attractive price-to-rent ratio, and lower entry costs make it a solid choice for buy-and-hold investors and those focused on cash flow. Investors will find Riverside appealing for its long-term potential, especially with its growing job market and consistent population influx.
Of course, like any market, there are challenges. Crime and homelessness rates in certain neighborhoods can raise concerns, and rising competition as more investors enter the market may drive up property prices. But with the right strategy—whether through diligent research, careful property selection, or effective property management—investors can mitigate these risks and position themselves for strong returns.
A Path Forward: Invest Smartly with Guidance
If you're considering Riverside for your next investment, it’s crucial to partner with experts who understand the intricacies of the local market. At PMI Riverside, we specialize in helping investors navigate these challenges, providing valuable insights into neighborhoods, property selection, and market trends. Our comprehensive services, from ROI analysis to tenant screening, ensure your investment journey is smooth and profitable.
Schedule Your Consultation Today!
Ready to explore Riverside for yourself? Contact us for a personalized consultation where we can discuss your investment goals, analyze the best neighborhoods, and craft a tailored plan to help you succeed in this promising market. Let’s turn your real estate investment into a long-term success.
