Policy Studies

As housing affordability challenges escalate, an increasing number of middle-income renter households are facing cost burdens. In response, states and localities are implementing policies to address these needs. While these programs aim to expand affordable housing in high-cost areas, they face criticism for potentially diverting resources from lower-income households.

This new research paper from the Harvard Joint Center for Housing Studies explores these middle-income housing initiatives, evaluating their goals, benefits, and the tradeoffs involved. By examining eleven state and local programs, the paper finds these initiatives are becoming more common across diverse regions, primarily focusing on expanding housing supply for the “workforce” based on area median income.

However, these programs often fall short of assisting the most cost-burdened renters, who are predominantly lower-income. Moreover, the demographic disparity, with middle-income renters being disproportionately white, raises concerns about reinforcing racial inequities.

The paper recommend designing middle-income housing programs that do not detract from resources for the lowest-income households, operate in areas where the market fails to serve middle-income renters, and provide additional benefits to lower-income communities. Read the full report to understand the complexities and potential solutions in addressing middle-income housing needs.

In 2023, the Terner Center published “Making It Pencil: The Math Behind Housing Development” to assist policymakers in understanding the financial feasibility of large-scale, for-rent midrise apartment buildings. However, recent state and local land use reforms have focused on smaller-scale housing in lower-density neighborhoods, including accessory dwelling units (ADUs), duplexes, and fourplexes, often referred to as “missing middle” housing. States like California, Oregon, and Montana, along with cities such as Minneapolis and Portland, have introduced legislation and rules to promote this housing growth.

This policy paper employs the methodology from our 2023 report to analyze the development characteristics of missing middle projects. Through a series of project pro forma case studies across four California markets, the report finds that many missing middle housing types are not financially feasible, with four-unit ownership buildings being the most challenging to develop. Despite these challenges, missing middle housing can play a crucial role in providing entry-level homeownership and naturally affordable rental options. It is imperative for local and state policymakers to reexamine regulations that hinder the development of missing middle housing, such as lot size, parking, and insurance requirements.

Nestled near the Elders Centre in the Tl’etinqox Community, six cabin-like homes are placed to form a circle to represent the four sacred directions, the cycle of the seasons, the cycle of life and more, and to encourage community gathering.

Tl’etinqox began to develop Elders Cabins in 2019 to honour the intentions, prayers, and needs of their Elders by providing safe and affordable living spaces for them to age in place, at the heart of the community. Elder tenancy applications opened for the cabins in September 2020.

Key insights:

In November of 2023, the province of British Columbia released their “Homes for People Plan” that drastically reduced zoning and municipal barriers to the creation of gentle density homes. In summary, new legislation requires all local governments in British Columbia to update their zoning bylaws to allow up to three to four units in all single-family zones and up to six units for properties with frequent bus service.

This resource, developed by the province, is intended to help local governments and their community members understand the legislative changes introduced related to small-scale, multi-unit housing (SSMUH).

Note: The information in this tool kit is for guidance only and is not a substitute for provincial
legislation. It is not legal advice and should not be relied on for that purpose.

Key insights:

This report investigates the potential for infill development in Mississauga to accommodate the region’s population growth projections and ensure that new development does not infringe on the urban greenbelt.

The report outlines:

• Mississauga could add approximately 174,000 new residential units (at an average unit size of over 1,000 sq.ft.) via low- and medium-density intensification.
• Through this approach, Mississauga could accommodate 435,000 new residents.
• This is enough housing to support Mississauga’s growth projects, and to also accommodate approximately 85% of Peel Region’s assigned growththrough to 2041.
• This housing can be delivered without the consumption of new greenfield land, reducing the need to encroach into the Greenbelt

This report is authored by Graham Haines and Brianna Aird of Toronto Metropolitan University.