Data Show an Uptick in Multifamily Missing-Middle Housing Construction

Solving the U.S. housing supply crisis will require a greater mix of housing at a variety of price points, and that includes "missing middle" housing. This housing type encompasses medium-density homes, such as townhomes, duplexes, and other small multifamily properties. Missing-middle housing saw a significant drop in construction after the financial crisis, and production of this housing type has lagged since the Great Recession. But the National Association of Home Builders' Eye On Housing blog reports that recent data show an uptick for multifamily missing-middle housing, in particular. 

The multifamily segment of the missing middle (apartments in 2- to 4-unit properties) has generally disappointed since the Great Recession. However, there was a noticeable uptick for this type of housing construction in recent data. For the fourth quarter of 2024, there were 5,000 2- to 4-unit housing unit construction starts. This is up 25% from the fourth quarter of 2023.

As a share of all multifamily production, 2- to 4-unit development was just above 5% of total multifamily development for the fourth quarter. However this is still lower than recent historic trends. From 2000 to 2010, such home construction made up a little less than 11% of total multifamily construction. Read more