Seattle architect David Neiman recently wrote a case study that explains how a series of regulations that made developers building micro-homes economically senseless. Forbes staffer Scott Beyer reports on this study, which begins with Seattle becoming a leader in micro-housing development in 2009 through 2013, when micro-houses accounted for nearly a quarter of Seattle's housing growth.

Media attention to this growth would lead to NIMBY opposition followed by regulations:

In September of 2014, King County Superior Court ruled, writes Neiman, “that all current pod-style micro-housing projects must go through the design review process, a time-consuming series of meetings with community members and a citizen panel that comment on plans.” This increased expenses and delays, forcing many developers to instead build Small Efficiency Dwelling Units (SEDU), a one-up from micro-units that must have 220 square feet of floor space.

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