Rent Increases Hit Poorest Tenants Hardest in US, Study Finds

Strategic Insights -

The Private Equity Stakeholder Project (PESP) has issued a report highlighting the stark contrast between rent increases for the poorest tenants and those for high-income renters in the US. The report, titled "The Poorest Renters, the Sharpest Increases," reveals that from 2021 to 2025, rents for workforce housing apartments increased by more than 20%, while rents for discretionary housing apartments rose by only 9.2%. This disparity is particularly alarming, given that workforce housing is the primary form of shelter for poor renters in the US, with two-thirds of them receiving no federal housing assistance.

Key Takeaways:

  • The largest rent increases for workforce housing apartments (over 20%) were seen in more than two-thirds of the 94 rental markets analyzed, with only five markets experiencing rent increases below 10%.
  • By contrast, only a quarter of the 94 markets reviewed saw discretionary housing rent increases over 15%.
  • At the regional level, the majority of US regions saw workforce housing rent increases over 20% over this time period.
  • In the Southeast, workforce rents increased 7.3 times more than discretionary rents.
  • The most significant regional increases were in Florida (26.8%), the Northeast (25.3%), and the Pacific Northwest (23.2%).
  • Of the 20 locations with the largest disparities between workforce and discretionary rent increases, all but four are located in the Sunbelt region.
  • Out of the 94 markets sampled, there were only 11 markets where rent increases for high income tenants outpaced rent increases for low income tenants.
  • Workforce housing is the primary form of shelter for poor renters in the US, with two-thirds of them receiving no federal housing assistance.

Statistics:

  • From 2021 to 2025, rents for workforce housing apartments increased by 20-26.8% in various regions.
  • The average rent increase for workforce housing apartments was 23.2%.
  • Discretionary housing rents increased by 9.2% from 2021 to 2025.
  • More than two-thirds (67.6%) of the 94 rental markets analyzed saw workforce housing cost increases that surpassed 15%.
  • Only five markets saw workforce housing rent increases below 10%.
  • The most significant regional rent increases were:

+ Florida (26.8%)

+ Northeast (25.3%)

+ Pacific Northwest (23.2%)

+ Southeast (22.5%)

+ Southwest (21.5%)

Sources:

  • The Private Equity Stakeholder Project. (2025). The Poorest Renters, the Sharpest Increases.
  • Original text: https://pestakeholder.org/news/rents-for-poorest-tenants-increased-more-than-twice-as-much-as-rents-for-rich-tenants-since-2021/
  • REPORT: https://pestakeholder.org/wp-content/uploads/2025/10/PESP_Report_Workforce_Housing_Oct_2025.pdf