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It also arises in mid dense homes, but it is specially designed to be with small homes. I do not build it. As far as I understand, it is for students to be build near to universities...
My high density residential buildings are complaining about small homes and the land value there is high. I think most of those people in those buildings prefer low density houses and there's not enough houses so they start to leave the city. Its basically forcing me to build a huge suburban area even if I eventually start running out of land to build on.
Unemployment should be reasonable too, if too high, add education capacity, also Welfare buildings. Never go below 100% on any city service, it's possibly bugged or unbalanced.
If you want high density buildings you don't need demand. Zone one building, wait to fill up, build the next one. The common mistake here is players zone beyond the cims' moving in rate of 750/h. I only build cities with high density and no demand whatsoever.
You just have to have other things to keep them happy above that.
It seems something is completely missing in your city or you are milking the budget of your cims.
Do you have some screenshots of the worst parts of your city (including demographic information) ?
The only cims happy to live in small apartments are single cims and students. As soon as a cim gets a family, or retires, they want to live in the suburbs. Generally speaking unless there's other contributory factors small homes alone isn't sufficient for a cim to leave the city, though they will look to move into lower density housing as soon as a spot becomes available.