Improving Housing Options in Rural Communities

Planning and zoning practices from the mid-20th century promoted the creation of single-family neighborhoods. But as the nation’s age demographics and household sizes change, land use policies and the housing types allowed need to change as well.

Milnor, North Dakota

Cover of a Missing Middle Housing study for Milnor, North Dakota, as produced by Opticos Design with support from AARP North Dakota

Photo courtesy Opticos Design

In 2022, AARP North Dakota helped implement a pilot project to explore the ways Missing Middle Housing could attract and retain residents in rural communities. The effort required the coordination of three partners: Opticos Design, which is the design firm that coined the missing middle terminology; the North Dakota Department of Commerce; and the city of Milnor (population 623).

After listening to residents about their housing needs and preferences, Opticos developed a plan that could allow up to 10 housing units on a lot that, in the past, was permitted to house only one residence. From the outside, the resulting residence looks like a private, single-family home. Although the city commission embraced the concept with enthusiasm, the proposal ultimately could not move forward due to financial obstacles.

The story did not end there, however. A private buyer purchased the lot and constructed a two-unit home that complements the site and surrounding neighborhood. 

Saco, Maine

A presentation slide from the City of Saco about its comprehensive plan for housing.

Photo courtesy City of Saco, Maine

Also in 2022, in response to the state’s growing housing shortage, Maine directed all municipalities to adopt local ordinances that encourage the development of housing that’s affordable, including by allowing accessory dwelling units (ADUs), which are secondary residences — such as a backyard bungalow or garage apartment — that can be used for a household member or as a rental housing unit.

As part of its efforts to make it easier for homeowners to build ADUs, the city of Saco changed its zoning code to allow larger, detached ADUs. Such units are often easier to make accessible with room for wider hallways and other features to accommodate a range of abilities.

To educate homeowners, the city and its age-friendly committee developed the City of Saco Accessory Dwelling Unit Guide.

Walla Walla Valley, Washington and Oregon

A presentation slide describing how community land trusts expand the availability of housing that’s affordable.

Photo courtesy Common Roots

Located in both Columbia County, Washington, and Umatilla County, Oregon, the Walla-Walla Valley is a popular retirement and tourist destination, so much so that home prices in the area soared more than 125 percent between 2017 and 2024. The area’s wineries, farms, healthcare providers, retailers and restaurants all contribute to a vibrant economy, but workers are needed to fill those jobs, and those workers need an affordable place to live.

In response, valley residents, organizations and local governments partnered to form the Common Roots Housing Trust, which developed a strategy for providing a permanent, recurring supply of affordable housing.

The program works by having the trust purchase and own, through a one-time public and/or private investment, land where it renovates or constructs homes that it sells to low- and moderate-income homebuyers for a below-market rate of between $100,000 and $350,000. When or if the purchasers sell the home, they must do so to a low-to-moderate income buyer at a profit of no more than 15 percent per year.