Missing Middle Housing

Owning a home is part of the long standing American Dream that many still strive for today. This dream, however, is hitting roadblocks for individuals looking to buy their first home at a reasonable to moderate price.

Nationwide, the medium listing price in February was $295,000, which is 7 percent higher than last year (Marketwatch). Though $295,000 doesn’t sound high to some individuals, for first time homebuyers, this may be steep. Under $200,000 is a target for entry-level buyers for what they can afford, but the availability of homes of this value are scarce. After years of homebuilders catering to the affluent, higher value homes, there are few houses that moderate-income or first time homebuyers can afford on the market. This lack of inventory in the market has been labeled the “missing middle housing.” The term was created to address the need for more diverse housing choices at affordable prices. Middle housing examples include duplexes, multiplexes, and some apartments (Washington Post). With the slowdown of the market, there is this opportunity to address this “missing middle housing” which could keep the housing market better off than what is being forecast.

When building these smaller homes, you may have builders who are wanting to build these on a larger scale. At Great American, we offer an Annual Auditable policy that can help address your builders’ needs for coverage on a more blanket basis, than individual one-shot policies per location. For more information about this policy, please contact your agency’s underwriter.


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