Middle-Income Housing

• The Middle-Income workforce, primarily grey collar workers, represents the largest segment of the 44 million renters in the U.S;
• Middle-Income Housing tenants are also the fastest growing segment of U.S. renters;
• Because many middle-income housing renters are essential workers, they have more stable employment;
• Barriers to entry are high for delivering new supply to this middle-income segment due to increasing construction, land and entitlement costs for the last several decades in the U.S. relative to median income wage growth;

As such, middle-income housing is the most resilient of all residential segments given the durability of its tenant base, growing demand, lack of new supply and institutional demand for the asset class.  This can include multifamily in lower cost settings, infill locations with a meaningful construction cost advantage, or certain public-private-partnership opportunities.

This sector may also encompass larger-scale Build-to-Rent communities, often referred to as “BTR” or “BFR,” designed for families and renters seeking more space, privacy, and a lower-density living environment. These communities can take a variety of forms, from horizontal apartments and townhome neighborhoods to detached single-family rental homes, all thoughtfully planned as part of a cohesive residential setting. With attractive onsite amenities, professional management, and institutional-quality operations, BTR communities offer the comfort and flexibility of single-family living with the convenience and consistency of a professionally managed rental community.