Making It Happen: Scaling Low-density Multifamily Housing

Enterprise, by Ahmad Abu-Khalaf

CAST contributed to this issue, highlighting recent updates on regulatory reforms and financing innovations aimed at the development of low-density multifamily housing.

View a PDF of the Issue Brief Here

What is low-density multifamily housing? There is no single, definition of lowdensity multifamily (LDMF) housing, which is also called gentle density housing or missing middle housing. LDMF housing varies across state and local housing markets depending on the market’s residential development patterns.

The effective definition of LDMF housing may also be influenced by what is allowable under current land use and zoning requirements. The effective definition of LDMF housing may also be influenced by what is allowable under current land use and zoning requirements.

On the financing side, several private entities have launched lending products tailored to LDMF housing. These loans are designed to provide debt capital for multifamily developments with small- to medium-sized loan balances.

Despite this progress, more work needs to be done to significantly boost LDMF housing nationwide. A much larger number of jurisdictions must adopt regulatory reforms that would lead to a broader regulatory landscape supportive of LDMF housing, enabling the housing industry to build it at scale.

Unlocking underutilized land zoned for single-family development to allow for LDMF housing has the potential to help jurisdictions ease their housing markets’ supply and affordability issues. However, boosting LDMF housing nationwide requires addressing the regulatory and financial barriers to creating this type of development at scale.