Over the past few years, many landlords experienced record-breaking rents and exceptionally fast leasing timelines. Today, we’re seeing a clear shift—and it’s becoming evident across both Orange County and the Inland Empire. 

Recently, members of our leadership team attended a national property management conference, where one message was consistent across the board: this change isn’t isolated to our local markets—it’s happening nationwide. What we’re seeing here is part of a broader trend affecting rental markets across the country. 

It’s a market correction only.

What the Local Data is Showing

Orange County 

• Rents are flattening (and in some areas declining a bit): Orange County rents have dipped as much as -2.4% in certain submarkets.

• Average rents remain stable but with only ~1%–2% annual increase.

• More inventory = more competition: There are roughly 7,000+ active rental listings, giving residents significantly more options.

• Days on market are increasing: Leasing timelines have stretched to around 30+ days on average, compared to much faster absorption in prior years.

• Price reductions are becoming common: About 1 in 3 rentals are reducing price a bit before leasing, and many are leasing at or below asking.

Inland Empire (Riverside / San Bernardino Counties)

Rent growth has normalized:

The Inland Empire is now seeing rent increases that are more in line with inflation, a clear shift from the rapid growth of previous years. During the peak market, Management One was proactively adjusting rents, averaging about $250 year-over-year increases, to ensure our owners fully captured market value at the right time. 

Inventory levels are rising, creating more competition:

We’re seeing a noticeable increase in available rental inventory, which is contributing to longer leasing timelines. For example, in October 2023, Moreno Valley had approximately 151 rental listings. By April 2026, that number had grown to an average of 181 active listings, with some months peaking at 598 properties for rent. More inventory means more choices for residents and more competition for each rental listing.

 Therefore, rent increases may be only $75 to $150 per month during lease renewals today.

Affordability is starting to impact demand:

Riverside County continues to rank among the least affordable rental markets relative to local income levels. As a result, we’re seeing softening demand at higher price points, with tenants becoming more selective and price-sensitive in their decision-making.

What This Means in Plain Terms

 Across both markets, the pattern is clear:

• More rental inventory
• Slower leasing timelines
• Increased price sensitivity
• Residents gaining negotiating power

In short, the market has shifted from landlord-favored to balanced (and in some cases, resident-favored).

What We’re Seeing in Real Time

This shift is showing up in very practical ways:

• Properties sitting longer than expected
• Increased showing activity but fewer applications
• Residents negotiating price or requesting concessions
• Higher competition from similar listings nearby

 The biggest risk right now isn’t the market; it’s pricing too high and chasing it down later.

 How to Win in Today’s Rental Market

1. Price Strategically (Day 1 Matters More Than Ever)

           Overpricing today leads to longer vacancy and ultimately lower returns.

2. Condition is a Deal Maker or Breaker

           Residents have options. Clean, updated, and well-maintained homes lease faster.

3. Speed = Send in funds, making the property rent-ready as quickly as you can, so work can begin, and we can start the marketing process to get it re-rented and cash flow coming back to you.

           Every week of vacancy costs $700 to $ 1,500 in lost rent.

4. Be Open to Incentives

           A small concession (like a move-in credit) can outperform a price drop over time.

The Bigger Picture (Why This Isn’t Bad News)

Even with the slowdown, rents are still significantly higher than pre-2020 levels, most by over a $12,000 a year. During the peak rental period from 2021 through 2023, Management One took a very proactive and strategic approach to pricing. While many owners were hesitant to adjust rents, we leaned into the data and aggressively positioned properties to capture true market value. As a result, we maximized rental income during one of the strongest markets in history and avoided leaving money on the table during rapid rent growth. Most importantly, we delivered measurable results.

Collectively, since 2021, we have put over $3,200,000 in additional rental income into our owners’ pockets in just 5 short years. That performance matters, especially now. While the market is shifting today, many of our owners are still benefiting from higher baseline rents established during the peak and from increased overall portfolio performance.

Long-term fundamentals (limited housing + high home prices) still favor landlords. What we’re experiencing is not decline. It’s normalization after an unusually aggressive market run.

Final Thought

Markets shift, that’s inevitable. What separates average results from strong performance isn’t the market itself, but the strategy behind how you respond to it.

In today’s market, where residents have more options and pricing has become more sensitive, the focus shifts from simply pushing rents to making smart, timely decisions that protect your bottom line. That means minimizing vacancy by pricing correctly from day one, staying competitive with similar listings, and making adjustments quickly when the market provides feedback.

At Management One, in 40 years that we’ve been in business, we’ve seen shifts in rental rates, just like you see in the stock market. As we all know, it does not go up every day. We wish it did as you do.

It is simply a correction in the rental rate market, and it will pass.