The area that has recently gained significant attention in Southern California is Riverside.

In the past, it was often viewed as "too far from LA" and "just an empty field," but now the atmosphere has completely changed.

Especially in Riverside County and nearby areas, most of the land was underdeveloped until the 2000s, but now large residential complexes and new towns are continuously being established, making it a new pillar in the Southern California real estate market.

Looking around Riverside, cities like San Bernardino County, Corona, Moreno Valley, Eastvale, Jurupa Valley, Norco, and Temecula are rapidly growing.

The current median home price in Riverside County is approximately $550,000 to $600,000. Popular areas like Corona and Eastvale are trading in the range of $650,000 to $800,000, and many new single-family home communities are priced over $800,000.

In contrast, areas like Moreno Valley and nearby San Bernardino are relatively more accessible, with prices ranging from $450,000 to $550,000. Considering that LA and Orange County are at $900,000 to $1.2 million, Riverside remains a competitive market due to its larger living space and new construction options for the price.

Notably, Eastvale and Jurupa Valley, which were mostly farmland and vacant land until the early 2000s, have transformed completely with the introduction of new schools, shopping centers, and planned communities.

Why has this change occurred? The reason is simple: there is almost no land left to develop in LA County and Orange County.

Unless it involves redeveloping existing homes, large-scale new housing supply is difficult due to the lack of land. As land becomes scarce, prices continue to rise, making it challenging for the middle class and first-time homebuyers to access housing.

The result of this is what is termed 'Eastward Migration.' As people search for areas where they can buy larger homes within the same budget, demand has naturally shifted towards Riverside and San Bernardino. In fact, the proportion of families moving to Corona and Eastvale from LA or OC is quite high.

Another change is in infrastructure. In the past, commuting was the biggest issue, but with freeway expansions and increased use of commuter rail like Metrolink, the feasibility of living in these areas has improved. Additionally, the rise of remote work has led to the perception that "it's okay to be far from the office," which has also had a significant impact.

The types of housing are also noteworthy. Most of the new towns near Riverside are being developed as master-planned communities. With new schools, parks, trails, and community centers being built together, they are particularly popular among young families. The ability to still supply large new developments in this area, which is hard to find in LA or OC, is a major competitive advantage.

Looking ahead, while transaction volumes may fluctuate depending on interest rates and economic conditions, the structural trend is unlikely to change significantly.

The land shortage issues in LA and OC are unlikely to be resolved, and the demand for population and housing will continue to exist. Therefore, the trend of demand moving to areas where new housing can be supplied is likely to persist.

Particularly noteworthy is the price gap. If you need to consider condos or townhomes in OC for the same budget, in the Riverside area, you can often choose single-family homes. This difference in living space for the price will continue to be a key factor driving population movement.

In conclusion, Riverside and its surrounding cities should not be viewed merely as outer suburbs but rather as an 'expansion area' in the Southern California housing market.

The reason this area, which was just an empty field in the early 2000s, has transformed into large residential complexes is ultimately due to the saturation of LA and Orange County.

As long as this structure does not change, the growth trend in the Riverside area is likely to continue for a considerable time.