A new report from the Private Equity Stakeholder Project presents a disturbing picture of the disparities between the high rents investors charge tenants in low-income “workforce housing” and the low amount charged to more affluent renters.
According to the report, there was an increase of more than 20% in rents for workforce housing apartments between 2021 and 2025 in eight of the nation’s 13 geographic regions -- more than double the 9.2% increase in rent for “discretionary housing” designed for renters by choice with substantial incomes.
People who live in workforce housing are modest-wage earners who occupy the lowest-cost units available on the open market without subsidies. Usually, this involves class C and D apartments, which are older and have fewer amenities.
“This type of affordable unsubsidized housing is the primary form of shelter for poor renters in the United States, two-thirds of whom receive no federal housing assistance following decades of program cuts,” the report stated.
In contrast, people who live in affordable housing are eligible for subsidies, regulatory support and their landlords must stay within price limits tied to household income, generally below the median income in the area.
According to the report, “rents in the United States have become downright unmanageable for most of the country’s residents in 2025.” It found that from 2021 to 2025, workforce housing rents increased at 2.2 times the rate of discretionary housing rents, adding “investors are increasingly using the sector to turn a profit with little benefit to tenants.”
Workforce housing costs rose most in Florida, the Northeast, the Pacific Northwest, the South and the Midwest. In the Southeast, the most expensive rents grew by just 2.9%, while low-cost rents spiked by 21.4%. In Jacksonville, workforce housing rent soared by 15.6% -- but discretionary housing rent edged up just 1%. Other cities with significant disparities included Atlanta (19.8% versus 2.2%), Tacoma (31.4% versus 4.1%), Albuquerque (30.3% versus 6.4%) and Seattle (38.5% versus 9.4%). In Manhattan, the average workforce rent rose 31.3%, while the average discretionary rent climbed just 22.4%.
This pattern of rent increases enables investors to profit by making minor upgrades and increasing cash flow from renters by necessity, with little risk, the report stated.
“While investors make these changes in the name of ‘efficiency,’ they often come with the downside of worsening tenant outcomes due to higher rents, quicker evictions, passed on utility costs, increased fees and fines, and reduced maintenance,” Private Equity Stakeholder noted.
“This allows landlords to maintain high returns through low tenant turnover and low vacancies.”
Investors in low-income housing also enjoy easy financing options from Freddie Mac and Fannie Mae. In addition, the sector is subject to fewer regulations and administrative requirements. The absence of subsidies for workforce housing is another benefit, since they often come with additional requirements.
Investor landlords can easily evict tenants for late payments and other reasons.
“With an average of 3.6 million evictions filed every year – 7% of renting households -- and more than 14 million renters feeling pressured to move due to rent increases, evictions are a clear manifestation of the United States’ ongoing housing crisis,” Private Equity Stakeholder stated.
It noted that large corporate investors have been documented to evict more aggressively than other landlords and cautioned that, as they encroach further into the housing sector, eviction filings could worsen, especially as rent and utility costs rise faster than wages.
“There is evidence that landlords often use eviction filings to facilitate debt collection, extract fees, or control tenant behavior. A 2020 GAO study found that a $100 increase in median rent was associated with a 9% increase in the estimated homelessness rate.”
The report also offered recommendations to improve tenant protections. As New York City Mayor-elect Zohran Mamdani demonstrated on the campaign trail, high rent is a sore point for many Americans. If his agenda is carried through, it may provide a blueprint for the future of housing.
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