What is Missing Middle Housing?

A blog empowering Hispanic homeownership through advocacy and policy.

By Elizabeth Nimmons
October 30, 2024

When weighing solutions to the growing housing affordability crisis in the U.S., it is critical that buyers, builders, and housing advocates think beyond traditional single-family homes. While the large house with a white picket fence in a quiet, suburban neighborhood has long been a calling card of the American Dream, focusing on single-family homes no longer serves the needs of our communities. Expanding the range of available housing types will be essential to solving the crisis.

One approach to increasing housing options revolves around filling the gap of “missing middle housing.” But what is missing middle housing? Why is it missing? And, how could its construction impact the housing market?

What is Missing Middle Housing?

Missing middle housing refers to a range of housing types that occupy a “middle” ground between single-family homes and large-scale apartment complexes. This includes duplexes, triplexes, fourplexes, townhomes and row homes, and cottage courts, in which several smaller detached buildings sit around a shared courtyard. These types of housing are designed to accommodate more diverse households and income levels and create more walkable communities that are inclusive, environmentally friendly, and affordable.

In addition to offering multiple units on what would traditionally be a single-family lot, missing middle housing types occupy smaller footprints (generally, small- to medium-sized homes) and are characterized by their simple construction and lower perceived density, meaning that though these buildings house more people than single-family homes, they do not make a neighborhood look more crowded. The development of these units in walkable neighborhoods and the integration of individual homes into shared spaces (e.g., the courtyard in a cottage court) can also foster a sense of community without sacrificing private living space.

Challenges to Developing of Missing Middle Housing

These middle housing types certainly appeal to many, so why are they “missing?” There are several factors that influence housing development, including zoning regulations, development costs, and community opposition.

1. Zoning Regulations: Unfortunately, the vast majority of zoning laws implemented in the past century favor single-family homes rather than a more diverse array of housing types. These laws are typically implemented at the city/local level and may include restrictions around minimum lot size, building height, or parking requirements, making the construction of something like a fourplex nearly impossible. Zoning laws are an extremely widespread issue when considering the development of missing middle housing. In California, for example, 95.8 percent of all residential land is zoned for single-family homes.
2. Development costs: When it comes to the economics of building homes, developers will lean into building the housing types with the greatest profit margins, which often means building large single-family homes or apartment complexes. Smaller projects can be less financially viable, given economies of scale where larger homes and developments reduce the cost per square foot through efficiencies in design, labor, materials, and other fixed costs. This mismatch between housing needs and profitability results in a lack of investment in missing middle housing types. Additionally, in some regions, there is also a strong market preference for single-family homes, making smaller housing types less desirable to build.
3. Community Opposition: Opposition from local residents, often in the form of NIMBYism, also plays a role. NIMBYism is a reference to the acronym “Not In My Backyard,” an attitude held by residents who do not want something to be built or developed in an area where they live, despite acknowledging that development is needed. In the context of missing middle housing, residents may oppose the construction of new housing types because of misconceptions about how their development may change neighborhoods, despite the fact that missing middle housing is designed to integrate within existing neighborhoods. Fortunately, though NIMBYs may be most vocal in the debate around rezoning residential areas, the majority of Americans favor policies that would allow for the construction of more multi-unit housing types.

Missing Middle Housing is Affordable, Sustainable, and Convenient

The construction of a more diverse array of housing types is essential to addressing the affordability crisis. Missing middle housing provides a broader range of housing options that meet the needs of modern families at more accessible price points. Smaller land requirements, compact design, and simple construction help keep costs down, and, as a result, these housing types create more affordable opportunities for homeownership, which is particularly important for first-time homebuyers. Yet, unlike renting, these homes still allow residents to build equity.

Beyond affordability, missing middle housing has the potential to make positive impacts in other ways. Adopting these methods of development is also sustainable. Not only do smaller footprint buildings require fewer construction materials, but the development of walkable, compact neighborhoods also lowers residents’ reliance on cars for transportation and minimizes the need for long commutes.

Missing middle housing is also incredibly convenient. American preferences regarding living arrangements are extremely different than they were fifty years ago. For example, a growing share of adults are living alone, and it makes little sense to assume all Americans prefer a single-family home. By increasing the diversity of available housing types, builders can better accommodate the more varied array of modern living arrangements.

How Do We Expand Missing Middle Housing?

To further expand missing middle housing, building strong coalitions and partnerships with housing advocates, local organizations, and industry professionals who share a vision for more affordable, inclusive, and sustainable communities is essential. It is also important to raise public awareness about the benefits of missing middle housing, dispelling common misconceptions about its impact on property values or neighborhood character.

Involvement in local politics is also critical. Because zoning laws are generally created at the local level, it is in local forums that these conversations take place. We encourage NAHREP members to take a leadership role and engage with their local city councils by attending meetings, communicating with councilmembers, and further educating themselves on housing politics in their communities. Members can also work with planning departments, real estate developers, and architects to propose zoning changes that allow for more flexibility in housing design and density.