Virginia appeals court backs ‘missing middle’ housing policy

An Arlington County, Virginia, “Missing Middle” housing initiative has been given new life following a Virginia Court of Appeals decision Tuesday — dismissing a lawsuit aiming to overturn the zoning overhaul.

A report from WTOP News showed the court finding that a group of homeowners who filed suit failed to include real estate developers as defendants — parties the court deemed “indispensable” to the case. Without those developers, the legal challenge could not proceed and was dismissed.

The decision effectively reverses a lower court’s September 2024 ruling that had struck down the policy and stalled housing projects under its provisions.

The homeowners, however, may still refile their lawsuit, this time naming developers who have built under the ordinance as defendants, according to court documents.

Long-term legal fight

The decision marks the latest turn in a years-long legal and political battle over the county’s efforts to expand housing access in one of the nation’s most expensive markets. According to Realtor.com, Arlington County’s median home listing price sat at $832,000 as of May.

In March 2023, the Arlington County Board unanimously passed the “Expanded Housing Options” ordinance — often referred to as the “Missing Middle” policy.

The law allows construction of townhouses, duplexes and small apartment buildings in areas that had previously been zoned exclusively for single-family homes — about 75% of the county’s residential land.

Supporters say the policy provides more affordable options for middle-income families who have been priced out of Arlington’s soaring housing market.

“We will consider next steps and how to best resume the EHO permitting process, including how to inform previous applicants who were either in the process or had their approved permits voided last fall,” Arlington County said in a statement following Tuesday’s ruling.

But opponents — many of them single-family homeowners — argue the policy favors developers and newcomers at the expense of long-term residents. Their concerns range from increased neighborhood traffic and overcrowded schools to pressure on local infrastructure.