The Poorest Renters, the Sharpest Increases: Examining the Rent Crisis in Workforce Housing

Between 2021 and 2025, rents in the United States' workforce housing sector—the lowest-rent market-rate housing—increased by over 20%, more than double the 9.2% increase seen in 'discretionary' housing. The report finds that in most of the 94 analyzed markets, rent increases for low-income tenants outpaced those for high-income tenants, with the most significant regional increases occurring in Florida (26.8%), the Northeast (25.3%), and the Pacific Northwest (23.2%). The analysis suggests that investor landlords, including private equity firms, target this sector as a reliable profit source due to high demand and a captive renter class. The report warns that these increases are likely to drive higher rates of eviction and self-eviction and calls for policy interventions such as price controls and eviction protections.

• From 2021 to 2025, rents in workforce housing—defined as the lowest-rent sector of market-rate housing without government subsidies—increased by more than 20%. This rate of increase was 2.2 times higher than the 9.2% increase observed for 'discretionary' housing intended for renters with substantial incomes.
• Regional analysis shows that most regions experienced workforce housing rent increases exceeding 20%, with the highest increases in Florida (26.8%), the Northeast (25.3%), and the Pacific Northwest (23.2%). In the Southeast, workforce rent increases were 7.3 times higher than those for discretionary housing.
• An analysis of 94 rental markets revealed that over two-thirds saw workforce housing cost increases surpassing 15%, while only five markets saw increases below 10%. Conversely, only one-quarter of these markets saw discretionary housing rent increases over 15%. Only 11 of the 94 markets showed rent increases for high-income tenants outpacing those for low-income tenants.
• Investor landlords and private equity firms view workforce housing as a consistent profit source because the high demand for accessible housing makes these tenants a 'reliable and captive renter class'. Some corporate landlords engage in frequent property flipping, transferring ownership every 2 to 4 years at higher prices.
• The report identifies a risk of increased eviction filings and 'self eviction' due to recent rent hikes. It notes that Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac provide easy loan financing to workforce property landlords and argues for stronger tenant protections and policy interventions, including price controls and institutional investment standards.

APA

Private Equity Stakeholder Project (2025). The Poorest Renters, the Sharpest Increases: Examining the Rent Crisis in Workforce Housing. https://pestakeholder.org/reports/the-poorest-renters-the-sharpest-increases-examining-the-rent-crisis-in-workforce-housing/

Chicago

Private Equity Stakeholder Project. The Poorest Renters, the Sharpest Increases: Examining the Rent Crisis in Workforce Housing. 2025. https://pestakeholder.org/reports/the-poorest-renters-the-sharpest-increases-examining-the-rent-crisis-in-workforce-housing/.

Wikipedia

{{cite report |author=Private Equity Stakeholder Project |title=The Poorest Renters, the Sharpest Increases: Examining the Rent Crisis in Workforce Housing |date=22 October 2025 |url=https://pestakeholder.org/reports/the-poorest-renters-the-sharpest-increases-examining-the-rent-crisis-in-workforce-housing/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{privateequitystakeholderproject2025poorest, author = {{Private Equity Stakeholder Project}}, title = {{The Poorest Renters, the Sharpest Increases: Examining the Rent Crisis in Workforce Housing}}, institution = {Private Equity Stakeholder Project}, year = {2025}, month = oct, url = {https://pestakeholder.org/reports/the-poorest-renters-the-sharpest-increases-examining-the-rent-crisis-in-workforce-housing/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }