Missing Middle Housing Production Lags
The missing middle construction sector includes development of medium-density housing, such as 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 two- to four-unit properties) has disappointed. For 2021, there were only 12,000 starts of such residences. This is flat from 2020, during a period of time when most construction segments expanded. For 2022, the total increased but to only 16,000. Nonetheless, this marks the best year for this type of multifamily construction since the Great Recession.
For the fourth quarter of 2022, there were just 3,000 two- to four-unit housing construction starts. This is flat from a year prior.
NAHB Chief Economist Robert Dietz provides additional details in this Eye on Housing post.
Learn more about missing middle housing.
Latest from NAHBNow
Leading Suppliers Council
Dec 24, 2025
10 Ways to Turn Your Business Into a Lean, Mean Building MachineMyriad industry challenges are adding time and cost to home building projects. But with the right technology, you can better anticipate and manage those challenges to help optimize your business' performance and profits.
Sponsored Content
Dec 23, 2025
The 5 Types of Builders — and the One Built to ProsperMost builders want the same things: predictable profits, less stress, and a business that doesn’t grind them down year after year.
Latest Economic News
Economics
Dec 22, 2025
State-Level Employment Situation: September 2025In September 2025, nonfarm payroll employment was largely unchanged across states on a monthly basis, with a limited number of states seeing statistically significant increases or decreases. This reflects generally stable job counts across states despite broader labor market fluctuations. The data were impacted by collection delays due to the federal government shutdown.
Economics
Dec 19, 2025
Existing Home Sales Edge Higher in NovemberExisting home sales rose for the third consecutive month in November as lower mortgage rates continued to boost home sales, according to the National Association of Realtors (NAR). However, the increase remained modest as mortgage rates still stayed above 6% while down from recent highs. The weakening job market also weighed on buyer activity.
Economics
Dec 18, 2025
Lumber Capacity Lower Midway Through 2025Sawmill production has remained essentially flat over the past two years, according to the Federal Reserve G.17 Industrial Production report. This most recent data release contained an annual revision, which resulted in higher estimates for both production and capacity in U.S. sawmills.