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
Mar 24, 2026
NAHB’s New Resource Shares Tools for Successful LeadershipBuilderBooks, the publishing arm of NAHB, recently released Frameworks for BOLD Leadership: Blueprints to Build Trust, Teams, and Legacy. The new title equips leaders at every level with tools to lead with clarity, conviction and credibility. The foreword was written by NAHB CEO Jim Tobin.
Mar 23, 2026
Best Year for Multifamily Missing Middle Construction Since 2007Although not a huge jump, 2025 featured the highest construction volume for multifamily missing middle housing starts since 2007. However, this subsector continues to underperform relative to its potential, due in part to zoning restrictions.
Latest Economic News
Mar 24, 2026
Almost Half of the Owner-Occupied Homes Built Before 1980Around 47% of the U.S. housing stock was built in the 1980s and earlier. The median age of owner-occupied homes climbed to 42 years old in 2024, up from 31 in 2005 according to the latest data from the American Community Survey.
Mar 23, 2026
Comparing New and Resale Prices: 4Q25In the fourth quarter of 2025, the median price for a new single-family home was $405,300, which was $9,600 lower than the median price of an existing home, which stood at $414,900.
Mar 23, 2026
Demolition Activity Slows Down But Remains Above Pre-Pandemic LevelsResidential demolition activity in 2025 declined 0.1% year-over-year but remained above pre-pandemic levels. According to NAHB analysis of data from Construction Monitor, permits pulled for residential demolition have been increasing since 2018, with the exception of 2020, when building-related activities broadly stalled.