Inland Empire Economy: Logistics, Warehousing, and Affordable Housing

The Inland Empire — formally Riverside-San Bernardino-Ontario — is the metro area east of Los Angeles that includes Riverside and San Bernardino counties. It is the largest U.S. logistics and warehousing hub by floor space, the back-office workshop for the Los Angeles and San Diego port complexes, and one of the most affordable large metros in California. The Inland Empire's economy is shaped by the goods that pass through it more than the goods it produces.

This is a plain-English tour of how the Inland Empire metro economy works. For the state-level picture, see California Economy. For the country-level view, see The State of the U.S. Economy and the broader Economy hub and city cluster.

How big is the Inland Empire metro economy?

For example, recent metro GDP for Riverside-San Bernardino-Ontario has run around $230 billion, according to the Bureau of Economic Analysis. Metro population is roughly 4.7 million, per the U.S. Census Bureau. That makes the Inland Empire larger by population than 25 of the 50 U.S. states.

The biggest industries

A handful of sectors do most of the work in the Inland Empire metro economy:

• Logistics and warehousing — the metro hosts the largest concentration of distribution centers in the United States. Amazon, Walmart, Target, and most major retailers run massive fulfillment operations here, supplied by the ports of Los Angeles and Long Beach to the west.
• Trucking and freight — the freeway corridor through the metro is one of the busiest trucking routes in the country, carrying imports inland from the ports.
• Healthcare — Loma Linda University Health, Kaiser Permanente, and Riverside University Health System together employ huge numbers of workers across the metro.
• Construction — fast metro growth and the constant addition of warehouse, residential, and commercial space keep construction unusually busy.
• Higher education — UC Riverside, the University of Redlands, and several California State campuses anchor faculty and staff workforces.
• Manufacturing — a long list of food-processing, building-materials, and specialty industrial firms operate in San Bernardino and Riverside counties.
• Government and public services — county and city government, military bases, and federal facilities anchor a large public-sector workforce.

Jobs and wages

Metro labor data is published by the Bureau of Labor Statistics West region. For example, the Inland Empire metro unemployment rate has typically run a tick above the national average, partly because the warehouse-and-trucking job mix swings more than metros built on healthcare or government employment.

The Inland Empire uses California's statewide minimum wage, which is well above the federal floor of $7.25. Specific industries — fast food and healthcare — have their own state-set higher minimums. The latest rates are at the California Department of Industrial Relations.

Cost of living

The Inland Empire's cost of living is the most affordable of any major metro in California. For example, recent HUD Fair Market Rent for a two-bedroom in the metro has run around $1,900 a month, with the western edge near Los Angeles County higher and parts of San Bernardino County and the desert lower. Current county-level numbers are at HUD User.

The federal government tracks region-specific inflation data through the BLS West region. The Inland Empire's CPI tends to track close to the national average month to month.

Taxes in the Inland Empire

Inland Empire residents pay California's progressive state income tax, with the highest top rate in the country. Combined sales tax in most of the metro is between 7.75% and 8.75%, made up of the state's 7.25% base plus county and city pieces. Property taxes are governed by the state's Proposition 13 system, which caps how fast assessed value can grow once a property changes hands. State rules live at the California Department of Tax and Fee Administration, and you can read more about how sales tax works in our glossary.

How the Inland Empire metro fits into the national picture

The Inland Empire is the back room of West Coast commerce. Roughly 40% of all U.S. container imports come through the ports of Los Angeles and Long Beach, and a huge share of those containers stop in the Inland Empire to be unpacked, sorted, and reshipped to the rest of the country. When U.S. consumer demand rises, the Inland Empire hires; when it slows, warehouses cut hours and trucking firms park trailers.

Affordable housing, by California standards

The Inland Empire's housing has historically been the affordable alternative to coastal Los Angeles, drawing families who cannot afford LA or Orange County prices. That dynamic has accelerated population growth and the warehouse-driven job base, but it has also pushed Inland Empire home prices well above the U.S. average over the past decade. Federal data on regional housing supply lives at the U.S. Census Bureau.

A note on the numbers

Numbers in this article change every quarter — always check the latest from BEA, BLS, and HUD User for the most current data on the Inland Empire metro.