- Missing middle construction—townhomes, duplexes, small multifamily—reached its highest level since 2007 in 2025.
- There were 19,000 starts of 2- to 4-unit housing in 2025, a 6% increase from 2024.
- This segment remains just 5% of total multifamily starts, far below the 2000–2010 average of nearly 11%.
Volume Edges Up
Missing middle construction saw a modest but significant rise in 2025, reports NAHB. The year closed with 19,000 new starts for 2- to 4-unit multifamily housing, including townhomes, duplexes, and small apartment buildings. This marks a 6% growth from 2024 and the strongest annual showing for missing middle construction since 2007.
Sector Still Lags Broader Market
Despite the increase, missing middle construction continues to underperform compared to its potential. In the fourth quarter of 2025, just 5% of all multifamily starts came from this category—less than half the rate seen from 2000 to 2010. This shortfall is largely attributed to restrictive zoning, limiting medium-density projects, even as developers and policymakers increasingly look to infill housing strategies as a way to ease supply constraints in urban cores.
Outlook Tied to Zoning Reform
Industry experts note that, without changes to zoning policies promoting moderate density, missing middle construction will likely remain below historic averages. Demand for this type of product persists, but advocacy for light-touch density zoning will be crucial for broader sector recovery.
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