Workforce segment renters living in small apartment properties are adapting to the changing economy, while also representing a broad occupational base.¹

Multifamily properties capture the largest share of the overall U.S. workforce rental demand, while single-family rentals are the largest individual asset class.

Rental demand from the workforce housing segment is on the rise, with a relatively higher concentration in single-family and small asset properties.

Data on the extent of housing-cost burden shows that relatively fewer households in small apartment properties are impacted severely by rental expenses.

Metros showing higher than average housing cost shares of household income are also home to higher concentrations of severely cost-burdened households.

The share of household income spent on housing costs for small properties ranges significantly across the largest U.S. cities. Overall, this share has declined slightly with the ongoing economic recovery, improving affordability in recent years.

In their unit mix, small apartment buildings are more specialized in bigger units compared to large properties, while also being more affordable. Renters can find value in small apartment properties, as examined in this update.

Small property unit demand from the boomer-senior age group is dominated by renters living alone, calling closer attention to property-level upgrades.

Household income data underscores the importance of small apartment buildings in maintaining workforce housing options, and thereby, the economic dynamism of cities.

Apartment properties show rent increases across all metro segments; while growing steadily in the largest metros, secondary markets are now experiencing higher rent growth in the small asset space.