All Articles

Small apartment properties play a crucial role in maintaining affordable rental options for the workforce segment across US metros.

Small apartment buildings comprise the largest share of workforce housing demand within the top 20 metros, while single-family rentals dominate the next 30.

Workforce rental housing demand has increased the most in the smaller metros where apartment properties, both small and large, are increasing their shares of this demand segment.

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.