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

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Source: arbor.com/blog/workforce-housing-rental-segment
Small balance multifamily loans are typically between $1 million and $5 million. Chandan
Economics defines small-cap properties as 5 to 19 units, mid-cap properties as 20 to 50
units, and large-cap properties as larger than 50 units. Both small-cap and mid-cap
properties can fall into the small balance spectrum.
All data is sourced from the American Community Survey (ACS), unless otherwise stated.
ACS statistics are sample-based estimates of the compositional profile of the total
population in the given year of data collection, and include a margin of error.
Relative Shares of U.S. Workforce Households by Rental Asset Class:
2016
Workforce Segment More Concentrated in Smaller Properties
• Smaller properties typically show higher relative concentrations of workforce
households.
• The share of workforce households was highest within single-family properties, at 32.3%.
• The share for small apartment buildings (5-49 units) was 30.7%.
Greater than 60% up to 120% AMI
Percent Share of All Renter Households within Asset Class
Single-Family
Rentals
Source: Chandan Economics, American Community Survey, 2016
32.5%
30.0%
27.5%
25.0%
22.5%
Duplex-
Quadruplex
Small Asset
Multifamily
Large Asset
Multifamily
All Asset
Classes
Workforce households, assumed to rent at prevailing market rates, are typically defined as those falling
within a range of 60% to 120% area median income (AMI), and this is specific to metropolitan and
micropolitan areas due to wage differences across the U.S.
Overall U.S. Workforce Housing Segment Size
• Workforce households are typically defined as those falling within a range of 60% to
120% of area median income (AMI).
• Of the 39.2 million rental households in the U.S., 11.9 million, or 30.3%, were classified
as being a part of the workforce segment.
• 50% of all U.S. rental households fall below 60% AMI, with implications for affordable
housing.
U.S. Workforce Rental Segment Shares: 2014-16
2014
Source: Chandan Economics, American Community Survey, 2016
30.4%
30.2%
30.0%
29.8%
29.6%
2016
Percent Share of All Households
Greater than 60%
up to 120% AMI
How Large is the
Workforce
Housing Rental
Segment?
Arbor Realty Trust
Rental demand from the workforce housing segment is on the rise, with a relatively
higher concentration in single-family and small asset properties.