City staff urges ‘missing middle’ housing to ease Rexburg affordability crunch

Aaron Denny, an economic development staff member, told the City of Rexburg council on March 6 that local housing has become markedly less affordable and urged action to expand “missing middle” housing types — smaller, house‑scale multiunit buildings that can increase homeownership opportunities. “There is some significant support for growth, especially when it provides jobs and a higher quality of life,” Denny said, citing the city’s Envision Madison findings.

Denny presented national and county data showing home prices outpacing incomes: in Madison County he said a median home now costs roughly $408,000 and that, by his accounting, a single earner can spend about 64 percent of wages on a median mortgage. He argued that both price and supply must change to restore affordability and recommended a three‑phase approach: first, education and analysis — bringing in planning firms such as Opticos to review local zoning and identify barriers; second, pilot integration and proof‑of‑concept projects (cottage courts, courtyard housing, small “mansion apartments” and other missing‑middle types); and third, creating a formal housing entity such as a local land trust or shared‑equity program to preserve long‑term affordability.

Denny said developers and employers are interested in Rexburg but sometimes back away after seeing housing costs. “That housing market is just so bad that it’s kind of hard for us to create jobs,” he said. He described how form‑based residential codes that emphasize house‑scale proportions can preserve neighborhood character while allowing higher densities that feel like traditional neighborhoods.

Council members asked for more time to review the materials and scheduled a future work session with planning and zoning to discuss implementation details. Denny signaled readiness to follow up, including bringing technical experts and code analyses to identify specific regulatory changes and pilot sites.

The presentation closed with a call to act before affordability worsens: Denny said the city has time to pursue code changes, demonstration projects and a housing entity so that Rexburg can retain workers and remain attractive to employers. The council did not take formal action on zoning or funding during the meeting; staff and planning officials will return with proposals and a timeline for next steps.