Rental options have changed.
In the 1960s and 70s, it wasn’t uncommon to see a modest two-unit duplex or a fourplex being built in a quiet neighborhood. These structures weren’t just architectural choices—they represented an era when small, local investors, often called “mom and pop” landlords, could afford to enter the rental market. Many lived in one unit and rented the others to cover the mortgage. Today, these buildings are harder to find going up. So, what changed?
The Golden Age of Small-Scale Rentals
Back in the post-WWII boom, middle-class families were encouraged to build wealth through real estate. Zoning laws were more flexible, land was cheaper, and financing was more accessible for small investors. This led to a surge in the construction of duplexes and fourplexes—affordable, manageable properties that served as both homes and investments.
These mom and pop landlords formed the backbone of the rental housing market, especially in suburban and small urban areas. They provided affordable housing options without the overhead or amenities of large apartment complexes.
Feature Highlights: Then vs. Now
#### 1. Changing Economics of Development
Building a small duplex or fourplex today is less financially appealing than it once was. With rising land prices, construction costs, and stricter zoning, the return on investment for small multifamily properties has diminished.
In contrast, large developers with access to capital can build high-density apartment complexes that benefit from economies of scale. These big projects offer amenities like gyms, pools, and co-working spaces—drawing in tenants willing to pay higher rents.
#### 2. Zoning and Regulatory Hurdles
Zoning laws in many cities now favor either single-family homes or large-scale developments. Infill development for duplexes or fourplexes often requires special permits or variances, adding time and cost to projects. This regulatory gray zone discourages small investors who can’t afford long approval processes.
However, some cities—like Minneapolis and Portland—have recently changed zoning codes to allow more small multifamily units, in an effort to address housing shortages. These changes could mark a revival of the mom and pop apartment model.
#### 3. Investment Trends: Single-Family Surge
Many smaller investors have shifted focus to single-family rentals. Platforms like Airbnb and property management tech have made it easier to manage these homes remotely. Additionally, institutional investors have begun buying up single-family homes, making competition tougher for individuals.
Yet, with rents continuing to rise, small multifamily properties remain a potentially lucrative middle ground. They offer more stability than short-term rentals and better cash flow than many single-family homes.
The Case for a Comeback
Despite the challenges, duplexes and fourplexes still make sense in 2025:
- Affordability: They provide lower rents than large complexes, especially in high-demand markets.
- Owner Occupancy: Living in one unit while renting the others can offset mortgage costs significantly.
- Community Feel: Smaller buildings foster closer tenant relationships and often lead to more stable, long-term renters.
According to recent data from the U.S. Census Bureau’s Survey of Construction:
- In 2022, only about 12% of new multifamily units were in buildings with 2 to 4 units.
- This is a sharp decline from the early 1980s, when over 40% of multifamily construction was in this category.
Most new rental units today are in buildings with 20 or more units, showing a clear shift toward large-scale developments.
What’s Next for Mom and Pop Rentals?
The future of mom and pop apartment houses depends on policy shifts and market conditions:
- Zoning Reform: Cities that relax zoning for small multifamily housing could see a resurgence in this style of development.
- Affordability Crisis: As rents escalate, policymakers may promote duplexes and fourplexes as naturally affordable housing options.
- Technology: New property management tools may lower the barrier for small landlords to manage multiple units efficiently.
In a time when housing affordability is at the forefront, the modest, no-frills duplex could make a quiet but meaningful return—if given the right conditions.
Further Reading & Resources
- U.S. Census Bureau – Survey of Construction: Annual statistics on the number and type of multifamily housing units built.
- Urban Institute – Missing Middle Housing: Insight into the role of duplexes and small multifamily buildings in solving housing shortages.
- National Multifamily Housing Council Data: Trends in multifamily housing, including types of units built and investor behavior.
- CityLab – The Case for Fourplexes: Articles on how cities are rethinking zoning to allow small multifamily housing.
