How does building new homes in my neighborhood help housing costs go down?

A:

Missing middle home types are often more affordable than single-detached houses because each home tends to be smaller, and they enable the sharing of land and infrastructure costs across more households. 

  • The U.S. Census shows that, across the country, the median monthly cost of a single-detached house—legal to build on essentially any residential lot in the country—is 17-18% higher than a home in a 2-to-9-unit middle housing complex, which is banned by zoning in the vast majority of American residential land.
  • In Utah, the median sales price of condos, townhomes, and twin homes was approximately $150,000 less than that of a single-family home, according to a recent report by the Kem C. Gardner Policy Institute.
  • In addition, extensive research from places that have legalized missing middle housing, such as Durham, Portland, Arizona, Houston, and Minneapolis has shown that housing prices drop as more homes come onto the market. After reforms were implemented in Austin, TX, rents saw the greatest decline (11%) in older non-luxury apartments that cater to lower-income renters.