Missing Middle Construction Continues to Fall Flat
‘Missing middle’ construction, which saw disappointing growth in 2021, continued its lackluster trend in the first quarter of 2022. The missing middle housing sector includes townhouses, duplexes and other small multifamily properties.
Despite a hint of accelerated construction in March 2022, this class of multifamily missing middle was flat to start the year. For the first quarter of 2022, there were just 4,000 2- to 4-unit housing unit construction starts. That’s even with the first quarter of 2021 and actually finds that the trailing four-quarter period was 7% lower than the year prior.
As a share of all multifamily production, 2- to 4-unit development is only 3.2% of the total. 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.
NAHB Chief Economist Robert Dietz provides more analysis in this Eye on Housing blog post.
Learn more about missing middle construction and how it can help address the nation's ongoing housing affordability crisis.
Latest from NAHBNow
Advocacy
Jan 22, 2026
NAHB Podcast: The Davos Housing Update That Wasn’tOn the latest episode of NAHB’s podcast, Housing Developments, Chief Operating Officer Paul Lopez is joined by Chief Advocacy Officer Ken Wingert to discuss the latest housing policies, including the housing announcement (or lack thereof) at the World Economic Forum and NAHB's continued advocacy efforts for 2026.
IBS | Awards
Jan 21, 2026
NAHB Announces 2026 Best of IBS FinalistsMore than 300 product entries in nine categories were judged by 42 industry and media representatives. See which products were selected as finalists in the 2026 Best of IBS Awards.
Latest Economic News
Economics
Jan 22, 2026
House Prices Decline in Local Markets Despite National GrowthNationally, house prices continued to rise at a modest pace in the third quarter of 2025, as mentioned in our previous quarterly house prices post. However, this national trend masks significant variation across local markets. While many metro areas continued to see house price appreciation, others experienced notable declines following several years of rapid growth.
Economics
Jan 21, 2026
Private Residential Construction Spending Edges Higher in October on Home ImprovementsPrivate residential construction spending was up 1.3% in October, rebounding from a 1.4% decline in September 2025. This modest gain was primarily driven by increased spending on home improvements.
Economics
Jan 21, 2026
Single-Family Permits Cooled in the FallIn October, single-family building permits weakened, reflecting continued caution among builders amid affordability constraints and financing challenges. In contrast, multifamily permit activity remained steady and continued to perform relatively well.