‘Missing Middle’ Housing Production Disappoints in 2021

Economics
Published

Residential projects that are neither single-family homes nor large apartment developments are often referred to as the missing middle of the construction sector. This includes medium-density housing like townhouses, duplexes and other small multifamily properties.

While townhouse construction has trended higher in recent quarters, the multifamily segment of the missing middle (apartments in 2 to 4 unit properties) has disappointed. For 2021, there were only 12,000 starts of such residences. This is flat from from 2020, during a period of time when most market segments expanded.

NAHB Chief Economist Rob Dietz provides more analysis in this Eye on Housing blog post.

Learn more about missing middle housing.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

PWB Week | Professional Women in Building Council

Sep 15, 2025

The Impact of the Professional Women in Building Leadership Grant

Professional Women in Building's annual scholarhsip programs provide students and emerging professionals with the resources, support and opportunities they need to thrive and lead the housing industry.

Associate Members Committee | Awards

Sep 15, 2025

Associate Award Winners Share Meaning Behind Their Win

NAHB is excited to award two of the association's top Associate contributors each year for their achievements. Two previous winners reflect on their experiences.

View all

Latest Economic News

Economics

Sep 12, 2025

Household Real Estate Asset Values Reach New High

The market value of household real estate assets rose to $49.3 trillion in the second quarter of 2025, according to the most recent release of U.S. Federal Reserve Z.1 Financial Accounts. The value rose by 2.7% from the first quarter and is 1.1% higher than a year ago. This measure of market value estimates the value of all owner-occupied real estate nationwide.

Economics

Sep 11, 2025

Parking Trends in Newly Completed Single-Family Homes, 2024

In 2024, 65% of newly completed single-family homes featured two-car garages, according to NAHB’s analysis of the Census’s Survey of Construction data. The share of new homes with three or more car garages stood at 15%, continuing a downward trend from its peak of 24% in 2015 and decreasing 2 percentage points from 2023.

Economics

Sep 10, 2025

Year-over-Year Building Material Price Growth Advances

Price growth for residential building materials rose for the fourth straight month in August, reaching its highest level since January 2023. Across domestic inputs goods and services into residential construction, service prices decreased in August while goods prices slightly advanced.