As population growth and affordability pressures reshape Southern California, the Inland Empire is emerging as one of the region’s most active fronts for housing development. Municipalities across Riverside and San Bernardino counties are moving quickly to rezone commercial corridors for mixed-use projects, aiming to balance surging demand for housing with the need for retail, office, and community services.
The city of Riverside recently approved a pilot “Mobility Corridor Overlay” along University Avenue, a project that could redefine the city’s central corridor. The new zoning allows ground-floor retail spaces with apartments stacked above, replacing the single-use zoning that historically separated commercial and residential development. City planners describe the pilot as a blueprint for future neighborhood revitalization, with the goal of creating denser, more walkable communities near transit, jobs, and educational centers such as UC Riverside.
San Bernardino is also moving forward with sweeping changes. Officials there have accelerated updates to the city’s General Plan, with provisions that encourage higher-density development near existing and planned transit hubs. Developers who include affordable housing units in their projects will be eligible for financial incentives, a move designed to address rising concerns about the lack of attainable housing for middle- and low-income households. These policy updates represent a significant shift for a city that has struggled with housing shortages while trying to balance growth and infrastructure limitations.
In nearby Ontario and Corona, developers report particularly strong investor interest in infill parcels. Proximity to employment centers and access to regional transit routes have made these cities attractive for mixed-use projects, which promise a combination of housing, retail, and professional office space. Local brokers note that infill development—repurposing underutilized or vacant land in established neighborhoods—has become a critical strategy for accommodating growth without expanding urban sprawl.
Market activity suggests that these initiatives are arriving just in time. Real estate agents across the Inland Empire are reporting rising absorption rates, with newly completed multifamily units leasing within weeks of becoming available. Vacancy rates are tightening, a clear signal that demand is outpacing supply. For developers, this presents both opportunity and risk: while the market appears ready to absorb new product, high construction costs, delays in infrastructure upgrades, and occasional community resistance to increased density remain significant hurdles.
Community feedback has been mixed. Supporters of the zoning changes argue that mixed-use projects will bring vitality to aging commercial corridors, boost local economies, and provide much-needed housing supply. Critics, however, express concern about increased traffic congestion, strain on utilities, and the changing character of suburban neighborhoods. Local officials emphasize that careful planning, phased infrastructure improvements, and design guidelines will be critical to easing the transition.
The Inland Empire’s zoning initiatives align with broader national discussions on real estate development. At the 2025 Commercial Real Estate Summit, held October 1 in Edmond, Oklahoma, panelists emphasized the importance of local capital, flexible zoning, and infill development to meet housing and commercial demand. Speakers highlighted the growing necessity of public-private partnerships, echoing strategies now being tested in Riverside and San Bernardino. The Summit underscored that successful urban projects increasingly rely on local investment and community buy-in, particularly in regions facing affordability crises.
As the Inland Empire adapts to rapid growth, its approach may serve as a model for other regions navigating similar pressures. By encouraging mixed-use zoning, leveraging investor interest in infill parcels, and prioritizing affordability, local governments hope to expand housing options while maintaining livable communities. The success of these initiatives will depend on balancing developer incentives with resident concerns, ensuring that growth enhances rather than overwhelms the region’s character.
With vacancy rates falling, absorption rates rising, and housing demand showing no sign of slowing, the Inland Empire stands at a pivotal moment. The choices made in the coming months—on zoning, infrastructure, and affordability—will shape the region’s housing market and urban landscape for years to come.
