First Quarter Multifamily Missing Middle Construction

2024-05-23T08:16:48-05:00

The missing middle construction sector includes development of medium-density housing, such as townhouses, duplexes and other small multifamily properties. The multifamily segment of the missing middle (apartments in 2- to 4-unit properties) has disappointed since the Great Recession. For the first quarter of 2023, there were just 43,000 2- to 4-unit housing unit construction starts. This is down 25% from a year prior. As a share of all multifamily production, 2- to 4-unit development was just above 6% of the total for the first quarter. In contrast, from 2000 to 2010, such home construction made up a little less than 11% of total multifamily construction. Construction of the missing middle has clearly lagged during the post-Great Recession period and will continue to do so without zoning reform focused on light-touch density. Discover more from Eye On Housing Subscribe to get the latest posts to your email.