5 Opportunities for Attainable Housing 

As housing affordability challenges persist across the nation, there are new opportunities to address the growing demand for diverse, accessible housing solutions. A key focus in this effort is addressing the “Missing Middle”—a range of housing types that fall between single-family homes and large apartment buildings.

This category includes duplexes, triplexes, townhomes, and accessory dwelling units (ADUs), which are vital for meeting the needs of middle-income individuals earning between 80% and 140% of the Area Median Income (AMI). Designed to be affordable without relying on government subsidies or special programs, missing middle housing offers a market-driven solution to expanding housing options. 

By increasing the overall supply of housing and making it more accessible, missing middle housing has the potential to ease affordability challenges in communities across the country. “Historically, barriers such as restrictive zoning laws and limited funding have hindered the development of this essential housing segment,” says Matt Mrva, Principal in Bohler’s Westborough office. “Fortunately, recent advancements — including new federal and state programs, faith-based organization (FBO) initiatives, and the innovative use of modular and manufactured construction — are beginning to pave the way for meaningful progress.”  

This article explores five emerging opportunities to bridge the gap in housing supply, offering practical and impactful solutions for communities nationwide. 

1. Federal Legislation: A Catalyst for Attainable Housing Expansion

Federal initiatives in 2025 are laying the groundwork for overcoming barriers to affordable housing development. These efforts aim to provide greater financing flexibility, reduce regulatory obstacles, and encourage innovation at the local level. 

HUD Increases Financing Flexibility for Multifamily Affordable Housing

Updates to the Federal Housing Administration’s (FHA) Multifamily Mortgage Insurance program are helping lenders and developers expand the nation’s supply of affordable rental housing. These changes are expected to streamline financing and foster growth in multifamily housing projects, providing critical support for communities in need. 

The YIMBY Act: Promoting Pro-Housing Policies

The bipartisan “Yes In My Backyard (YIMBY) Act” (H.R. 3507), currently under review in Congress, is a significant step toward reducing barriers to housing development. Spearheaded by the newly formed YIMBY Caucus, this initiative seeks to combat restrictive local regulations that limit new housing supply. 

Endorsed by the National Low Income Housing Coalition (NLIHC), the YIMBY Caucus has gained widespread support from housing advocates and industry leaders. “America’s affordable and homelessness crisis demands urgent action,” said Diane Yentel, President and CEO of NLIHC. “The bipartisan YIMBY Caucus represents a critical effort to advance housing solutions at the scale needed to address this crisis.” 

By promoting policies aligned with YIMBY principles, the caucus is working to create opportunities for new developments that can help meet the growing demand for affordable housing across the country. 

Property Improvement in Manufactured Housing Loan Modernization Act

This proposed legislation aims to modernize Title I of the National Housing Act by increasing loan limits and allowing property improvement loans to fund the construction of accessory dwelling units (ADUs). ADUs represent an innovative solution to expand affordable housing options while maximizing existing properties. (More on ADUs below!)  

Reducing Regulatory Barriers to Housing Act

This act provides state and local governments with tools to tackle regulatory challenges. By directing HUD to offer technical assistance and develop best practices for zoning and land use reform, the legislation empowers communities to streamline housing production processes. 

Key provisions include grants to digitize zoning codes, pre-approve affordable housing designs, and standardize local legislative models.  

“Together, these federal initiatives can help to address the nation’s housing crisis by removing barriers, encouraging innovation, and expanding opportunities for affordable housing development,” says Mrva.

2. Florida’s Live Local Act: A Game-Changer for Attainable Housing

Florida’s Live Local Act is reshaping the landscape for affordable housing development by directly addressing the state’s housing crisis and the “Missing Middle” gap. By combining tax incentives, zoning flexibility, and expedited approval processes, this act encourages multifamily development while creating more opportunities for middle-income families. 

Tax Exemptions for Affordable Housing

A cornerstone of the Live Local Act is the “Missing Middle” Property Tax Exemption. This program offers tax relief to multifamily developments that commit to providing affordable housing units. The exemption applies to developments with at least 71 units that provide housing for individuals and families earning between 81% and 120% of the area median income (AMI). Developers must secure a Multifamily Middle Market Certification from the Florida Housing Finance Corporation (FHFC) to qualify. 

This tax incentive lowers operating costs for developers, making affordable housing projects more financially feasible. 

Streamlined Approval Process

One of the act’s most transformative aspects is the shift to an expedited administrative approval process. By eliminating the need for lengthy public hearings, the Live Local Act cuts down approval timelines that often stretch to a year or more. 

If projects comply with non-Live Local regulations, such as setbacks and open space requirements, they can move forward in a fraction of the time. For example, developers in Miami have successfully obtained project approvals in under three months—a significant improvement over the typical timeline of 9 – 18 months. 

 Zoning Flexibility for Broader Development Opportunities

The Live Local Act also expands zoning opportunities, enabling multifamily residential developments in areas historically zoned for commercial or industrial use. This change removes restrictive barriers, giving developers access to sites that were previously off-limits. 

3. New Jersey’s Fourth Round: Unlocking Opportunities for the “Missing Middle”

As New Jersey enters the Fourth Round of its Affordable Housing Act, municipalities and developers are presented with a transformative opportunity to address the state’s housing shortage, particularly for the “Missing Middle.” This segment includes housing options like townhouses, duplexes, and multifamily units that provide alternatives to single-family homes and large apartment complexes. 

Incentives for Developers

The new legislation introduces attractive incentives to encourage developer participation. These include: 

• Increased Density: Allowing higher unit counts per acre to make projects financially viable. 

• Flexible Zoning: Creating new zoning designations that support affordable and multifamily housing developments. 

• Tax Incentives: Offering financial relief to developers who commit to building affordable housing. 

These measures make it easier for developers to navigate regulatory hurdles while ensuring projects align with market demands and affordability goals. 

Transforming Underperforming Commercial Sites

One of the most significant opportunities presented by the Fourth Round lies in repurposing underperforming commercial properties, such as office parks, shopping centers, and outdated manufacturing facilities. 

These sites often occupy prime locations with existing infrastructure, such as transportation networks, utilities, and proximity to employment centers. However, they may lack the zoning or density allowances needed to support residential development. Under the Fourth Round, municipalities are showing increased willingness to adopt zoning changes and density adjustments that enable these properties to be transformed into vibrant, mixed-use communities. 

“Municipalities are beginning to see the potential of these sites to address housing needs while revitalizing areas that have struggled to keep up with market trends,” explains Dan Duggan, Bohler Associate in Warren, New Jersey. “The Fourth Round opens the door for innovative projects that blend housing with commercial, recreational, and community spaces.” 

4. Implementing Workforce Housing

Workforce housing plays a critical role in addressing the “missing middle” housing crisis by offering affordable options for middle-income earners—such as teachers, firefighters, and police officers—who often fall between the eligibility for subsidized housing and the affordability of market-rate units. “This type of housing is specifically intended to meet the needs of those who are essential to a community’s fabric but are increasingly priced out of living in the areas where they work,” explains Mike O’Hara, WDCEP Co-Chair and ULI Washington Advisory Board.

By focusing on smaller-scale, multi-unit housing types like duplexes, fourplexes, and courtyard apartments, workforce housing can help restore the diversity and attainability of housing options that have become scarce due to outdated zoning and development constraints. In doing so, it not only supports economic resilience by keeping essential workers close to their jobs, but also fosters more walkable, connected neighborhoods—an essential step toward solving today’s housing challenges. 

5. Innovative Use of Modular and Manufactured Construction

The innovative use of modular and manufactured housing is rapidly emerging as a viable solution to address the “missing middle.”  These building methods offer faster, more cost-effective construction compared to traditional site-built homes, making it possible to increase housing supply and reduce costs, particularly in areas with high land values and limited options. 

Modular and manufactured homes also support the development of diverse, house-scale housing types—like duplexes, cottage courts, and multiplexes—that fit seamlessly into walkable neighborhoods. These prefabricated options are ideal for Accessory Dwelling Units (ADUs), providing efficient, high-quality, and often more sustainable housing. Common strategies in cities like Portland, Oregon and San Francisco, California include urban infill development, micro-apartment complexes for young professionals, and integrating ADUs into mixed-use projects that combine residential and commercial spaces.  

“As more communities work to reduce regulatory barriers such as minimum lot sizes and parking requirements, modular and manufactured housing is proving to be a practical path forward to create vibrant, inclusive, and affordable places to live,” says O’Hara.

Maintaining Momentum for the Missing Middle

At Bohler, we understand the challenges and opportunities of addressing the housing crisis and are committed to helping developers create impactful solutions for the Missing Middle. From site selection and zoning analysis to permitting and project execution, Bohler’s land development consultants provide the expertise and guidance developers need to navigate legislative changes and unlock new opportunities in 2025. Whether you’re planning to transform underutilized commercial sites, develop accessory dwelling units (ADUs), or collaborate on faith-based housing projects, our team is here to help you bring your vision to life. 

Connect with a Bohler land development consultant near you to explore how we can support your next project and contribute to the creation of vibrant, equitable communities. Together, we can shape the future of housing and build solutions that work for everyone.