Increasing numbers of people are struggling to find affordable housing in cities across the developed world. This situation has consequences for the individuals by lowering their quality of life and more widely affects city competitiveness and social cohesion. In particular, households that earn too much to be eligible for social housing and not enough to buy a home are increasingly squeezed in the rental market.

This report highlights best practices for increasing housing supply aimed specifically at this group. Such homes are referred to in this report as ‘intermediate housing’. The report focuses on lessons for building new intermediate housing rather than making better use of existing stock.

Demonstrating on a place-by-place basis how barriers to intermediate housing related to land availability and pricing, stakeholder trust and engagement, and financing could be overcome, this report looks at lessons for transferring such best practices into different locations to enable intermediate housing to be built at scale.

The availability and especially the pricing of land are key barriers to more intermediate homes being built. Because land value is most often calculated as a residual – the difference between the value of what can be built on a site and the costs of producing the housing – identifying suitable land at a price that will enable development of intermediate housing to be commercially viable is difficult.

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