NAHB: Missing Middle Housing Construction Remains Stagnant
The missing middle construction sector, which includes development of medium-density housing like townhouses, duplexes, and other small multifamily properties, has underperformed since the Great Recession.
According to the National Association of Home Builders (NAHB), number of new construction starts for 2- to 4-unit multifamily properties remained unchanged at 4,000 in the fourth quarter of 2023.
This represents a slight increase from the previous quarter, but still falls short of the historical average.
From 2000 to 2010, such development accounted for nearly 11% of all multifamily construction.
Construction of the missing middle has clearly lagged during the post-Great Recession period and will likely continue to do so without zoning reform focused on light-touch density.
