When it comes to housing affordability, communities nationwide are facing growing challenges. In many regions, traditional single-family homes have become too expensive for many prospective buyers or those looking to downsize. At the same time, large multifamily developments are not always the right fit for neighborhood scale, infrastructure capacity, or community character, leaving many communities searching for housing options that fall somewhere in between.
Missing middle housing continues to gain traction as communities search for practical solutions to close that gap. From major metros to midsize and smaller communities, interest in attainable housing options that integrate into existing neighborhoods is growing.
Yet, despite the high demand, developers often face approval hurdles that delay timelines, increase costs, or require multiple redesigns.
The good news is that many of these challenges can be addressed through early planning and coordination. The difference between a smooth project and a costly setback often comes down to decisions made long before construction begins.
To help advance these projects successfully, here are five key factors developers should consider before breaking ground.
One of the biggest misconceptions is that missing middle housing fits neatly within all existing zoning frameworks. However, most zoning codes were written decades ago with only single-family or large multifamily developments in mind.
Fortunately, missing middle isn’t a single product type. It includes multiplexes, cottages, townhomes, and other small-scale formats, giving developers flexibility to match specific project sites and market needs.
“What makes middle housing really unique is that it can adjust to just about any site,” says Jake Vasa, PE*, Civil Engineer. “With the smaller building footprints, these projects can often work with existing grade, utilities, or other site constraints.”
Still, the regulatory path can be tricky. Because regulations vary widely between communities, what works in one city may not in another, so it’s important for developers to understand local ordinances on scale, frontage, parking, and density before finalizing designs. This early awareness helps teams stay ahead of redesigns and unexpected delays.
Many missing middle housing projects encounter challenges not because the concept is flawed but because early conversations with city staff or engineering teams happen too late. A site that appears compliant on paper may still present infrastructure, access, or stormwater challenges that affect feasibility, especially for small-scale infill or neighborhood-integrated projects with tight lot constraints.
Pre-application meetings and discussions with a civil engineering team are critical. These conversations can help developers:
Neglecting this step can be costly. Starting your entitlement strategy before designs are finalized is not an extra step; it is risk management, helping teams protect budgets, maintain timelines, and keep approvals on track.
Site selection often determines whether a missing middle project moves smoothly through approvals or encounters obstacles. Infill parcels, irregular lots, and redevelopment areas can provide the best opportunities, offering design flexibility while leveraging existing infrastructure.
Redevelopment sites, in particular, can also be a smart choice for developers. Many already have utilities in place, reducing upfront infrastructure costs and simplifying coordination. Communities are often eager to see new housing breathe life into underused or overlooked properties, generating local support that can help projects gain momentum.
“Zoning and approvals are a little easier to obtain on redevelopment sites,” says Jake. “You’re either improving something the community no longer uses or revitalizing a neglected area. These locations often include walkable paths and pedestrian corridors, which can help improve approval chances.”
Remember, site selection sets the stage for success. Developers should consider lot size, infrastructure, walkability, neighborhood compatibility, and design flexibility to create projects that communities welcome.
Even experienced developers can hit unexpected roadblocks with missing middle housing projects. Many delays aren’t caused by the concept itself but by missteps in planning or adapting to today’s development landscape.
Some of the most common mistakes developers make include:
Recognizing these risks early helps teams maintain momentum, reduce redesign cycles, and keep projects aligned with approval timelines.
Too often, developers secure a site first and assemble consultants later. By that stage, key assumptions about utilities, grading, access, stormwater, or density may already be built into the financial model. If those assumptions prove inaccurate, timelines and budgets tighten quickly.
Working with residential land development experts during site feasibility allows you to pressure-test the deal before it becomes a commitment.
“Every month we see new ideas for missing middle developments, and many of them stall because developers don’t involve the right team early,” says Jake. “We work alongside our clients from start to finish, helping them navigate site constraints and local regulations before they close on a property.”
Bringing the development team together early helps uncover potential challenges unique to small-scale, neighborhood-integrated sites, optimize concepts, reduce risk, and set projects up for smoother approvals and on-time delivery.
Missing middle housing is becoming an increasingly important part of the housing conversation as communities look for more attainable options that fit within established neighborhoods.
If there’s one key takeaway for developers, it’s to treat entitlement and site feasibility as part of your acquisition strategy, not an afterthought. Successful projects start with a clear strategy, informed site selection, and collaboration with experienced professionals.
As housing needs continue to evolve, missing middle developments will play a growing role in shaping resilient, adaptable communities. Developers who approach these projects strategically can deliver housing that meets market demand while creating lasting value for the communities they serve.
5 Key Tips for Missing Middle Housing Developers
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Jake Vasa, PE*, is a civil engineer and regional practice center leader for SEH. An innovative and creative thinker in design problem solving, Jake brings extensive experience in multifamily development and serves as a go-to resource for residential development and missing middle housing.
*Registered Professional Engineer in NE, IA, KS, and MO