As the Inland Empire continues to grow in size and economic and political influence, the Rose Institute of State and Local Government and the Lowe Institute of Political Economy have partnered together to publish the Inland Empire Outlook, a newsletter analyzing economic and political trends shaping the region. This post is the first of a series looking at their findings in their Winter 2010 issue.
In the issue, the Inland Empire Outlook examines the housing crisis for the Inland Empire as compared to the rest of California and the United States. They find that though there has been progress, the crisis continues in the region, and may even get worse in the coming years:
Although this data may support the conclusion that the housing market is stabilizing, there are factors that could contribute to further decline. Expectations of additional foreclosures due to increased unemployment and the recasting of adjustable-rate mortgages (ARMs) could lead to even lower sales prices and inhibit the industryâ€™s path toward recovery. These teaser-rate ARMs, the largest percentage of which are set to readjust in 2012, may prompt a further increase in defaults and place more pressure on the housing sector. Until the Inland Empire economy can support its own weight and stem job losses, the housing market will continue to struggle.