Economic Sustainability and ‘Missing Middle Housing’: Associations between Housing Stock Diversity and Unemployment in Mid-Size U.S. Cities

Single-family detached homes—the lowest-density housing type—continue to dominate the U.S. home construction industry. These homes are carbon-intensive and automobile dependent; the built environments they produce militate against civic relations and attitudes. Cities need to increase density, support multimodality, and develop social capital, but these issues are not propelling cities to diversify their housing stock. The objective of this research is to facilitate this shift by establishing economic arguments for increased density and housing diversity. Municipal-level U.S. Census data is used to explore the interurban relationships between diversity in housing stocks and unemployment rates in 146 mid-size American cities. A measure of diversity, Shannon’s H, is applied to housing stock and found to be strongly associated with lower unemployment for workers over 25 years old after controlling for measures of urban social burden. In contrast to the much-heralded “trade-offs” between environmental quality, social equity, and economic development, these findings suggest that the dense, walkable, low-carbon city, and the economically sustainable city might be the same place.