First-of-its-kind ‘ROOM Act’ Would Slash Restrictions on SROs, Co-living

The Institute for Justice developed model legislation that would reduce or eliminate zoning and building code barriers to low-cost, small and shared housing units.

1 minute read

December 9, 2025, 8:00 AM PST

By Diana Ionescu @aworkoffiction


Mid-rise vintage SRO brick hotel building with ground floor retail and "Hotel Hamlin" painted sign on side in Tenderloin district, San Francisco.

SRO hotels were a fixture in early 20th century American cities, offering affordable rooms with shared amenities. | Smallbones, CC0, via Wikimedia Commons / Wikimedia Commons

The Institute for Justice (IJ) has published the ROOM Act, a model bill aimed at improving housing affordability by “Restoring Options in Occupancy Models.”

The legislation, which IJ plans to help introduce in multiple states, aims to eliminate barriers to co-living and single-room occupancy (SRO) arrangements that offer affordable housing options for single individuals, yet are prohibited by zoning codes and building regulations in much of the country.

According to an IJ press release, “Single-room occupancy was a standard fixture in many cities, but was aggressively and deliberately phased out by local governments in the mid-20th century, often during counterproductive efforts at urban renewal.” In expensive cities, this led to more people becoming homeless when they couldn’t afford larger homes. 

Monday, December 8, 2025 in Institute for Justice

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