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NeighborhoodsOctober 25, 2024

San Bernardino County Properties: Sustainable Value Appreciation

Analysis of sustainable value appreciation in San Bernardino County market.

By Paul Myers

San Bernardino County properties are showing sustainable value appreciation in 2024, with suburban inland areas near Ontario and Fontana leading at 2-3% annually. The county's diverse geography -- desert, mountain, and suburban markets -- creates distinct appreciation patterns, and the logistics-driven employment growth is providing a solid economic foundation.

Geographic Breakdown

High Desert (Victorville, Barstow): More remote, less demand. Prices are soft, appreciation is minimal. Investor interest is low.

Foothills and Mountains (Big Bear, Wrightwood, Running Springs): Vacation home and retiree markets. Prices are stable. Appreciation is slow but steady.

Suburban Inland (San Bernardino, Fontana, Ontario): This is where the action is. New construction, younger demographics, stronger employment. Appreciation is 1-2% annually.

Logistics Hub (along I-10 and I-15): Warehouse and logistics development driving employment and population. Appreciation 2-3% annually.

The Logistics Effect

San Bernardino County is California's logistics hub. I-15 and I-10 funnel through here. Massive distribution centers employ thousands.

That creates employment, which drives population, which drives housing demand.

I've appraised homes in communities built around warehouse districts. The jobs are real. The commutes are shorter than Riverside-to-OC. The wages are decent.

This is creating sustainable demand that's different from the pandemic remote-work boom.

Appraisal Patterns

In the last 90 days, I've appraised 28 properties in San Bernardino County. Here's the pattern:

Newer Construction: Appraising at or near asking price. Builders are pricing things right.

2010-2015 Construction: Appraising 1-3% below asking in some cases. Older builders' homes need pricing adjustment.

Pre-2000 Homes: Mixed results. If renovated, appraising well. If original condition, appraising lower.

Age matters more in San Bernardino than Riverside. The market is becoming more discriminating about condition.

Investor Activity

San Bernardino investors are less active than Riverside investors. The cap rates (rental income relative to price) are tighter here because prices are higher and rents don't cover the gap as well.

That said, some investors are buying. They're looking for newer construction with strong rental potential.

Long-Term Viability

San Bernardino's long-term story is solid. Jobs, population growth, and new construction are all supporting value appreciation.

It's not spectacular. It's not pandemic-level. But it's sustainable.

What Homeowners Should Know

If you own in San Bernardino, you're in a market with long-term fundamentals. Appreciation will be slow but steady. That's not a bad thing—slow appreciation means stable value.

If you're buying, San Bernardino offers affordability and growth potential. For first-time buyers, it makes sense.

If you're invested in logistics (warehouse, distribution), San Bernardino is where your employment is, and housing appreciation follows employment.

Risk Factors

Logistics could slow if the economy falters. That would affect San Bernardino more than Riverside, because logistics is more of the growth engine.

But right now, logistics is solid, and that supports sustainable appreciation.

San Bernardino is a working-class market with working-class appreciation. It's not glamorous, but it's real.

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