Harvard Research Examines State and Local Programs Promoting Middle-Income Housing
The Harvard University Joint Center for Housing Studies (JCHS) recently released a white paper, “Subsidizing the Middle: Policies, Tradeoffs, and Costs of Addressing Middle-Income Affordability Challenges,” that examines 11 state and local programs designed to address middle-income housing needs amid the housing affordability crisis.
The programs that the JCHS researchers analyze target middle-income rental households — which constitute 14.4 million renters, or one-third of all renters nationally, who earn between 60 to 120% of area median income (AMI) — through direct or indirect public subsidies.
“Numerous state and local middle-income housing programs have been created in recent years with the explicit intent to address the affordability challenges of households in the workforce,” the paper notes. “These programs suggest that working adults should be able to afford to live in the communities where they work.”
State programs examined include:
- Florida: Missing Middle Property Tax Exemption
- Georgia: Rural Workforce Housing Initiative
- Michigan: Missing Middle Housing Program
- Colorado: Middle-Income Housing Authority
- Rhode Island: Middle Income Loan Program
- California: CSCDA Workforce Housing Program
- Minnesota: Workforce Housing Development Program
- Massachusetts: Workforce Housing Initiative
- Kansas: Moderate Income Housing Program
Local programs examined include:
- Philadelphia: Workforce Housing Credit Enhancement
- Breckenridge, Colo.: Workforce Housing Five-Year Blueprint
Although the programs differ in terms of funding, activities and requirements, the researchers identified several key themes, including the recent focus on this segment of housing, the use of AMI as a threshold to determine eligibility, and geographic diversity of these programs.
Researchers also found that these middle-income housing programs are primarily focused on “expanding the supply of housing affordable to middle-income households through new development, though many projects also fund rehabilitation, adaptive reuse, or acquisition and conversion.”
Most programs offer favorable or forgivable construction financing to developers of middle-income housing, the paper adds, as well as grant funding directly to developers. Some programs provide a cap on per-unit funding, which may depend on the type of activity funded and/or subsidy provided.
Researchers note that many of these programs are relatively new, so it’s difficult to determine their full impact. The research also takes a comparative look at middle- vs. low-income renters — based on factors such as housing affordability challenges, employment status, geography and demographic details, and identifies the benefits and concerns surrounding middle-income housing programs — with concerns that these programs may be overshadowing the needs for the nation’s most cost-burdened renters.
In addition to these types of housing programs, JCHS researchers propose that states and localities look toward additional solutions outside of subsidies to help increase housing supply — solutions that underline key points from NAHB’s 10-point plan.
“Liberalizing local zoning ordinances, particularly in areas that allow only single-family homes, can encourage a broader range of housing types like small multifamily buildings, ADUs, or manufactured homes, and can make it easier to increase the overall stock,” the paper states. “Expedited permit processes, relief from some environmental or community review requirements, reduced parking mandates, or density bonuses for projects that hit a specified affordability level could also encourage development that benefits middle-income renters.”
Visit jchs.harvard.edu to view the full report.
Latest from NAHBNow
Jan 07, 2026
3 Game Changers to Transform the Way You Do BusinessThe Game Changers format pairs an industry professional with an expert outside the industry to tailor the latest techniques, strategies and approaches to the building industry. Learn how you can experience the best of both worlds — the business world and the building world — at the 2026 International Builders' Show in Orlando, Feb. 17-19.
Jan 07, 2026
Mortgage Rates End 2025 at the Lowest Level of the YearLong-term mortgage rates have been declining since mid-2025 and ended the year at their lowest level since September 2024.
Latest Economic News
Jan 07, 2026
State-Level Employment Situation: November 2025In November 2025, employment levels were largely unchanged across all states, with year-over-year growth holding near 2%. In contrast, construction employment showed greater variation, with some states experiencing declines of up to 7.5% while others posted gains approaching 10%.
Jan 07, 2026
Construction Job Openings Increased in NovemberThe count of open, unfilled positions in the construction industry increased in November, per the delayed Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS). The current level of open jobs is down measurably from two years ago due to declines in construction activity, particularly in housing.
Jan 06, 2026
Mortgage Rates End 2025 at the Lowest Level of the YearLong-term mortgage rates have been declining since mid- 2025 and ended the year at their lowest level since September 2024. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.19% in December, 5 basis points (bps) lower than November. Meanwhile, the 15-year rate declined 3 bps to 5.48%.