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

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.

Here’s a quick look at how demographics are contributing to a surge in renting single-family homes.

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.

As primary markets get increasingly expensive for housing, young adults at the beginning of their careers are moving into regional hubs. This movement is providing new growth opportunities for small asset investments.