Enacts GS 160D-707 providing as follows. Defines middle housing to mean buildings that are compatible in scale, form, and character with single-family houses and contain two or more attached, detached, stacked, or clustered homes including duplexes, triplexes, fourplexes, fiveplexes, sixplexes, and townhouses. Defines eight other terms. Mandates that local governments allow all middle housing types in areas zoned for residential use, including those that allow for the development of detached single-family dwellings. Permits local governments to regulate middle housing pursuant to state law so long as any regulations do not act to discourage development of middle housing types through unreasonable costs or delay through zoning, development, siting, or design review standards that restrict middle housing types to less than three stories, or a floor area ratio of less than one. Requires application of the same permit and review processes applicable to detached single-family dwellings to middle housing. Specifies the statute's scope and impact on single-family dwelling permitting, and private property agreements. Makes regulations enacted thereunder inapplicable to an area designated as a local historic district as described. Limits the scope of the statute to areas that are served, or by extension may be served, by a local government water system, a local government sewer system, a public water system, or a described wastewater collection or treatment works. Lists seven issues that a local government is barred from regulating related with regards to middle housing, including prohibiting the use of any dwelling units on an affected lot as a long-term rental, requiring the installation of fire sprinklers, and restricting the ability of the owner to determine the size and location of parking spaces. Requires local governments to consider ways to increase middle housing affordability when adopting regulations or amending comprehensive plans under the statute such as waivers or deferrals of system development fees, dedication of recreation areas or open space, or transportation improvements or street construction. Makes the statute applicable and effective 18 months after the date the act becomes law. Provides that all middle housing types described will be allowed in any area or district zoned for residential use, without limitation, if a local government fails to adopt development regulations pursuant to the statute's authority. Deems void any provision of an instrument recorded on or after the date the statute becomes effective affecting real property that allows the development of a single-family dwelling but prohibits the development of middle housing or an accessory dwelling unit.