“Missing middle housing” is an emerging trend in multi-family development – one that’s demanding developers look closely at its benefits and return on investment (ROI) opportunities.
This type of neighborhood-scale development includes a variety of house-sized building types that offer more affordable living options for the workforce and growing communities. It’s called “missing” because these housing types disappeared after the 1940s and “middle” because they can be situated on empty parcels in between a spectrum of housing types, such as single-family homes and mid- to high-rise apartments.
As housing affordability pressures continue across markets nationwide, missing middle housing is gaining momentum. Let’s take a closer look at why demand is rising and how developers can capitalize on ROI while helping address critical housing needs.
Missing middle housing is defined as house-scale buildings featuring multiple units that reside in walkable neighborhoods. The term was coined by Opticos Design Founder Daniel Parolek in 2010 to describe a range of multi-unit or clustered housing types that help meet growing demand for walkable yet urban living.
Though the term is fairly new, the building types are not. Missing middle housing features a range of building types – including duplexes, multiplexes, cottages, townhomes, live-work spaces and beyond. These types of developments provide communities with variety and character, each of which meets the desires of many of today’s users.
By constructing several unique housing types, developers have the opportunity to provide communities with a variety of housing options to choose from – each with private entrances and private driveways.
To keep costs down, developers can have these units standardized and mindfully planned to create efficiencies as well as innovations in utilities and site work.
When planned with these goals in mind, missing middle housing development offer shares servals defining characteristics:
Located within walkable areas, close to amenities
Never exceeds the scale of a house
Integrates well with other building types
Features small, well-designed residences; floor plans similar to single-family homes
Can be purchased or put up for rent
Creates character and community both within the buildings and neighborhoods
Young couples, teachers, single professionals, and retiring baby boomers are among those seeking this housing type. Many are looking for ways to live in walkable neighborhoods without the long-term costs and maintenance of detached single-family homes.
Ultimately, missing middle housing is helping to solve the mismatch between the available U.S. housing market and shifting demographics, combined with the growing demand for walkability, safety, greenspace, independence/privacy and other similar qualities of life.
Several trends are driving the current housing market, three of which are explored below. These trends are impacting how we think, rent, buy, build and develop.
Combined, these factors, among others, are driving development in all housing segments – from high-end markets to mixed-use housing and affordable multi-family housing. For private developers, the strong market demand with limited supply creates a timely opportunity to introduce housing types that bridge the gap between detached homes and large apartment buildings.
The typical product of a multi-family development is the cookie-cutter 40–80 unit apartment building, often a mid-rise structure rising three to four stories or more with a large footprint. These buildings typically feature long shared hallways, centralized entry points, large surface parking lots, and only one or two unit layouts for renters or buyers to choose from.
While this dormitory-style model continues to meet housing demand, it often struggles to create the sense of home many residents are seeking. Shared lobbies and corridors, units separated only by thin walls, multiple flights of stairs, and limited private outdoor space can make daily living feel impersonal and disconnected. Residents may have housing, but not necessarily the feeling of home, community, and privacy.
As a result, many communities and developers are exploring Missing Middle Housing as an alternative. Rather than concentrating dozens of units into a single structure, this model distributes smaller, house-scale buildings throughout a walkable setting. The approach maintains density and efficiency while creating a more neighborhood-oriented living experience.
This shift is more than a short-term trend. It is redefining what attainable, high-quality housing can look like, raising expectations across generations for communities that balance affordability, privacy, and connection.
The Prairie Queen housing development in the City of Papillion, Nebraska (population ~20,500) is one example of a successful missing middle housing neighborhood. In 2016, Urban Waters, a private developer in Omaha, had a vision to recreate the neighborhood feel of a classic community (e.g., no big buildings, no parking lots). The $100 million project was greenlit in 2018, with construction beginning the same year.
“What’s really different about this is it’s a multi-family housing project, but we’ve designed it as a neighborhood,” Urban Waters told the Papillion City Council in January 2018.
The missing middle housing neighborhood sits on approximately 50 acres in Papillion and will ultimately feature about 500 units – including small and large duplexes, three-plexes, four-plexes, six-plexes, apartments, townhomes and retail spaces, along with other recreational features and connections. The site neighbors and connects to the Prairie Queen Recreation Area (photos below).
As civil designer and civil engineer for the project, SEH provided due diligence, platting, permitting and site design. Opticos Design served as the master planner and design architect for the building types and architecture, with Studio 951 serving as the architect of record. As a result of the SEH team’s site planning expertise and master engineering – that is, involving engineers early in master planning efforts to integrate infrastructure, stormwater and grading scenarios – UrbanWaters was able to begin construction on this complex new development in 2018. Several phases are now complete, as highlighted in this video (courtesy of Opticos Design).
In fact, the SEH team’s master engineering efforts enabled the developer to achieve a number of efficiencies in site utilities and grading – including storm sewer, sanitary sewer and water main. The SEH team developed site layouts and grading exhibits to communicate cost implications during every step of design development in order to create a plan that met the expectations of the planners and developer. Without this detailed attention on every building throughout the master plan, the site would have required costly and time-consuming grade and utility adjustments.
Through our experience in designing this development and seeing construction unfold, we have gained a deep understanding of how to best plan the required infrastructure. This type of development is extremely challenging – with numerous, unique, house-scale buildings in close proximity – requiring private mains and alleyways to accomplish the community feel. Our learned techniques have led to significant project efficiencies, which are key to financial project success.
As noted previously, the Prairie Queen housing development neighbors and connects to the Prairie Queen Recreation Area. It sits adjacent to Prairie Queen Lake and several miles of bike lanes and trails – capitalizing on the current amenity trends and empowering the development amidst high demand for both recreation opportunities and a variety of housing types. The development even offers recreation outfitting as an added amenity residents can use to take advantage of the site features.
Missing middle housing isn’t just filling a gap. It is restoring what has been missing from our neighborhoods. Across the country, developers are seeing the shift. People want more than units. They want places that feel like home, with walkability, character, and a sense of belonging.
That is where missing middle stands apart. It delivers the density developers need with the livability residents want. But as Prairie Queen shows, success takes more than a good idea. It requires smart planning, early coordination, and a clear understanding of site and infrastructure impacts.
Jake Vasa, PE*, is a Civil Engineer, and an innovative and creative thinker in the areas of design problem solving. Jake also serves as the SEH Omaha office manager. His years of experience in multi-family developments make him the company’s go-to resource in this area and specific to missing middle housing.
*Registered Professional Engineer in NE