Mixed-market housing (sometimes mixed-income housing) refers to housing developments that are partially subsidized — setting aside a percentage, or number of non-market units. Typically, mixed-market projects are approached in collaboration between private housing developers, and public or not-for-profit housing providers.
Mixed-market housing is generally considered an effective Affordable Housing approach, due to the relative ease of development and provision, as well as the potentially positive outcomes of integrating folks of varying socio-economic statuses.
Profits generated from the development, sale, or rent of market-rate units are typically used to subsidize the costs of below-market units, meaning mixed-market projects require significantly less governmental support than fully-Affordable projects, both for operations and capital investment.
Mixed-market projects are also less likely to struggle with socio-spatial segregation, or isolation, as lower-income residents are integrated into the same community as the higher-income residents — theoretically, accessing similar amenities and economic opportunities.