Economic Liberty
Private Property
Zoning Justice Project

Restoring Options in Occupancy Models (ROOM) Act

Co-living or single-room occupancy (SRO) housing was once a common and lawful part of America’s housing landscape, from spare bedrooms and small boarding houses to large residential hotels in the city. Together, these rooms provided a range of affordable options for workers, veterans, students, and newcomers.

But over time, exclusionary zoning, arbitrary building code requirements, and discriminatory occupancy rules made this housing type illegal across much of the country. The result is fewer housing choices, higher rents, increased pressure on families and individuals, and the modern homelessness crisis.

The ROOM Act restores these lost housing options by re-legalizing co-living, both through new construction and the conversion of existing buildings. From small boarding houses and accessory bedrooms to premium co-living properties in converted offices or commercial buildings, the ROOM Act allows the private market to meet real demand with safe, flexible housing.

By pre-empting local bans and clarifying statewide rules, the ROOM Act expands housing choice and affordability without subsidies or government micromanagement, freeing property owners to provide dignified and affordable housing options that fit modern needs.

What Can Legislatures Do?

The Institute for Justice offers the ROOM Act, allowing state lawmakers to:

  • Re-legalize single-room occupancy housing and co-living housing typologies statewide
  • Allow both new construction and conversion of existing homes and buildings into co-living housing
  • Prevent restrictive zoning, density, parking, or occupancy rules from effectively banning these housing types
  • Clarify building code standards to ensure safety while eliminating arbitrary or discriminatory barriers
  • Expand housing choice, affordability, and resilience by restoring market-driven housing options

Featured Webinar

Making Room: Re-Legalizing America’s Most Affordable Housing Option

Watch experts from the Institute for Justice discuss exploring how relegalizing co-living or single-room occupancies (SROs) can expand affordable housing, strengthen property rights, and reduce homelessness – without new spending or bureaucracy. Featuring policy experts and innovators, the discussion will trace how zoning bans on SROs worsened today’s housing crisis and present IJ’s ROOM Act, a model state reform that empowers communities to bring back safe, flexible, market-driven housing options.

Moderated by Samuel Hooper, Legislative Counsel at IJ, this webinar brings together experts on the legal frontlines and leaders shaping state policy.

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