Just One More Week
 
Industry Pulse Check Closes June 15. Learn more
 

Harvard Research Examines State and Local Programs Promoting Middle-Income Housing

Housing Affordability
Published

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.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

IBS

Jun 08, 2026

IBS Scholarships Offer Members More Opportunities to Network and Learn

More members are able to experience the numerous benefits of attending the International Builders' Show thanks to the IBS Scholarship Program. Applications are now open for IBS 2027 scholarships, which will provide recipients with a show pass, travel stipend, hotel accommodations and more.

Spring Leadership Meeting

Jun 05, 2026

Watch Livestreams of Key Spring Leadership Meetings

NAHB leadership will gather June 9-13 for the 2026 Spring Leadership Meeting in Washington, D.C. Members and HBA staff not in attendance can view livestreams of key meetings.

View all

Latest Economic News

Economics

Jun 08, 2026

Mortgage Applications Retreat in May, with ARMs Gaining Share

Mortgage application activity declined again in May as higher mortgage rates continued to suppress the market, although adjustable-rate mortgages (ARM) gained some traction. According to the Mortgage Bankers Association’s (MBA) Market Composite Index, a measure of total mortgage application volume, applications fell 5.5% month-over-month in May on a seasonally adjusted basis.

Economics

Jun 05, 2026

U.S. Labor Market Remains Resilient in May

Despite rising inflation and ongoing economic uncertainty, the U.S. labor market remained resilient in May. Nonfarm payrolls increased for the third consecutive month, and the unemployment rate held steady at 4.3%.

Economics

Jun 04, 2026

Mortgage Rates Increase Further as Inflation Remains Elevated

Mortgage rates continued to increase in May as inflation accelerated. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.41% in May, up 7 basis points (bps) over April.