Expanding Housing Supply Through Home Conversion, Zoning Reform, and Rural Micro-Suburb Development

Executive Summary

Housing affordability and housing availability have become major public policy challenges in many communities. Rising home prices, escalating construction costs, population growth, and restrictive land-use regulations have contributed to shortages across both urban and rural regions. This report examines two policy concepts designed to expand housing supply more rapidly and affordably:

1. Converting large three- to five-bedroom homes into multiple studio apartments.
2. Allowing rural landowners to develop small-scale micro-suburbs consisting of compact housing units, tiny homes, modular dwellings, and shed-style structures where adequate infrastructure exists.

The report evaluates how zoning reform, streamlined permitting, reduced regulatory barriers, and infrastructure investment could influence the effectiveness of these approaches. While both concepts offer potential advantages in housing production and affordability, successful implementation depends upon maintaining life-safety standards and ensuring sufficient infrastructure capacity.