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

1. Access the Industry’s Only Multifamily Small Balance
Research and Insights at arbor.com/blog.
BY ARBOR
Source: arbor.com/blog/multifamily-workforce-rental-demand
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.
Distribution Shift in Workforce Household Demand
Workforce Demand Shifting Toward Multifamily Properties
• Large asset multifamily properties increased their overall share by 72 basis points (bps).
• Demand capture went up by 28 bps for small apartment properties.
• Workforce households shifted slightly away from single-family and duplex-quadruplex
rentals.
Greater than 60% up to 120% AMI
Capture Across Asset Class: 2014-16
Single-Family
Rentals
Source: Chandan Economics, American Community Survey, 2016
75
50
25
0
-25
-50
-75
Duplex-
Quadruplex
Small Asset
Multifamily
Large Asset
Multifamily
Workforce households, assumed to rent at prevailing market rates, are typically defined as those falling
within a range of 60% to 120% of area median income (AMI), and this is specific to metropolitan and
micropolitan areas due to wage differences across the U.S.
Workforce Rental Households across Asset Classes
• Workforce households are typically defined as those falling within a range of 60% to
120% of area median income (AMI).
• Of the estimated 11.9 million workforce rental households in the U.S., 44% lived in
multifamily properties.
• Single-family rentals comprise the largest share, attracting a 38% share of workforce
renter households.
Distribution of Workforce Segment Renter Households across
Asset Class: 2016
Source: Chandan Economics, American Community Survey, 2016
Worforce Segment Households Defined as 60-120% AMI
Single-Family Rentals
Duplex-Quadruplex
Small Asset Multifamily
Large Asset Multifamily
37.5%
18.3%33.4%
10.8%
Multifamily
Properties
Capture Largest
Share of Overall
U.S. Workforce
Housing Demand
Arbor Realty Trust
Multifamily properties capture the largest share of the overall U.S. workforce rental
demand, while single-family rentals are the largest individual asset class.