While there is no single, agreed upon definition of low-density multifamily (LDMF) housing, our research describes LDMF development as the type of housing with a density that falls between traditional single-family development (a detached unit designed to be occupied by one household that sits on its own parcel of land) and high-density multifamily development (broadly defined as having a large number of housing units in relation to the construction site’s total area/size, thereby maximizing land use). Where it falls on the spectrum depends on the area’s residential development patterns.
Since single-family—only zoning contributes to housing supply scarcity, which has a spillover effect on home sales and rent prices, permitting LDMF housing in areas previously reserved for single-family development could positively impact a market’s supply and affordability challenges. However, scaling LDMF housing requires addressing the regulatory and financial barriers to creating this type of housing.
Since releasing a paper on this strategy in 2020, several jurisdictions and private entities have taken steps to make it easier to build LDMF housing. In a new issue brief — Making it Happen: Scaling Low-density Multifamily Housing – the third in a series focused on opportunities to scale affordable housing innovations — we discuss opportunities to scale affordable housing innovations, including regulatory reforms designed to facilitate the development of some forms of LDMF housing and recent lending products tailored to financing LDMF development.
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