Boarding and lodging houses played a crucial role during American industrialization, providing shelter for rural people and immigrants seeking job opportunities in rapidly urbanizing cities where affordable housing was scarce.

After being largely zoned out of existence for the past 75 years, these housing options are now being reconsidered as a solution to the worsening housing affordability crisis.

Co-living, which was on the rise before the Covid-19 pandemic, faced setbacks due to the reduced demand for shared living spaces. However, the intensifying housing affordability concerns have reignited interest in single-room occupancy housing.

The Institute for Justice has developed a legislation template, known as the Restoring Options in Occupancy Models Act (ROOM Act), aimed at standardizing SRO zoning across states. This legislation would legalize SRO housing, accelerate building supply, and eliminate restrictions that hinder the development of such housing options.

SROs: From Blight to Opportunity

In the early 20th century, boarding and lodging houses were stigmatized as overcrowded and morally suspect, leading to their regulation and eventual elimination. However, the perception of these housing options has evolved, prompting a reconsideration of their value in addressing housing needs.

Revival of Housing Affordability Concerns

Co-living gained popularity as part of the sharing economy, offering flexible and affordable housing solutions. While the pandemic disrupted the co-living trend, the pressing need for affordable housing has sparked a renewed interest in shared living arrangements.

Zoning Laws and Investor Caution

Zoning restrictions and investor hesitancy have hindered the development of co-living projects, creating legal uncertainties and limiting growth opportunities. However, smaller-scale co-living developments have proven to be resilient, showcasing the potential of this housing model.

The Future of Co-living

Despite challenges, companies like PadSplit and Roomrs are expanding their operations to meet the demand for flexible and affordable housing options. Legislative efforts, such as the ROOM Act, are paving the way for a more inclusive and diverse housing market.

Shifting Perspectives at the State and City Level

Several states and cities have taken steps to legalize and promote shared housing options, recognizing the need for innovative solutions to housing shortages. The ROOM Act presents an opportunity for policymakers to prioritize housing supply and consumer choice.