Solving the Middle Housing Gap: A Look at Workforce Housing
Imagine your child’s teacher, the police officer next door, or a nurse at your local clinic – all struggling to find home’s they can afford in the community they serve. That’s the “middle housing gap” in action. This sector is often squeezed between low-income subsidized units and high-end market homes. At Summit Mortgage, we believe bridging this gap – through workforce housing – is essential not just for individuals, but for thriving communities.
What is workforce housing?
Workforce housing, also referred to as the “missing middle housing” includes modest multi-unit homes (think duplexes, triplexes) that sit between apartment complexes and large single-family homes. Generally, these homes are affordable to households earning slightly below to slightly above the Area Median Income (AMI).
Why workforce housing matters
The need for workforce housing is not a “niche” problem – it’s a core workforce issue. The U.S. has seen a historic rise in new renter households, many of which are cost-burdened and spend a significant portion of their income on rent.
Workforce housing aims to:
- Keep the workforce close: High housing costs push workers far from their jobs, boosting commutes, costs, and stress, which harms employee retention in essential roles.
- Bolster equity and stability: Affordable workforce housing supports social equity. It prevents displacement – and fills a gap that subsidized programs fail to reach.
- Strengthen local economies: When teachers, nurses and first responders can live affordably near where they work, neighborhoods thrive.
What’s being done to solve for the “missing middle”?
State and local governments have begun to take action to combat the middle housing gap through policy reform and specialized programs. In 2023, Florida passed the “Live Local Act”, which aims to use tax credits and zoning flexibility to spur development for working class residents. Places like Minnneapolis and Arlington are eliminating one-family-only zones to allow duplexes, triplexes, cottage courts, and more. States like Michigan, Massachusetts, Rhode Island, and others have targeted middle-income loans to bridge financing gaps. Bank-backed programs, tax increment financing, density bonuses, and land trusts are all stepping stones toward solving the nationwide workforce housing affordability crisis.
Summit’s role
At Summit Mortgage, we’ve spent 30+ years connecting buyers with tailored loan solutions – be it FHA, low-down-payment, or even mixed-income options.
Summit’s workflow includes:
- Smart loan design: Finding the right loan program – FHA, USDA, VA, or conventional loans – that suits moderate-income borrowers.
- Community partnerships: Collaborating with municipalities and builders on workforce housing projects to ease access to suitable financing.
- Empowerment through education: We simplify the jargon, clarify eligibility, and guide essential workers confidently through the process – from pre-approval to closing.
Where we plan to go from here
- Support policy reform of flexible zoning and incentive-based programs that unlock more middle-housing supply.
- Continue collaboration with lenders, municipalities, and builders to align incentive structures, and innovate financing tools.
- Expand outreach and literacy through targeted education and access to financing that helps more working families become homeowners.
Workforce housing isn’t a luxury, it’s an essential component of a healthy community. Ensuring that essential workers can live where they serve boosts economic resilience, cultural richness, and quality of life.
At Summit Mortgage, our mission is clear: empower hard working families – regardless of income level – to access mortgages and live in the communities they help sustain. We’re not just observing the gap – we’re working to be part of the solution.
Ready to explore your options? Connect with a Summit Mortgage Loan Officer today to get started!
