Coeur d'Alene City Officials Evaluate Tiny Home Zoning

The city is exploring new municipal code amendments to allow tiny homes as a strategy for mitigating rising local housing costs.

Updated on Oct. 25, 2026 in Apartments

Coeur d'Alene City Officials Evaluate Tiny Home Zoning

Live Poll

Do you believe local zoning changes are the best way to make housing affordable in your area?

In October 2026, Coeur d'Alene city officials discussed potential municipal code changes to incorporate tiny homes into the local housing market. The proposal seeks to address increasing market costs through alternative residential zoning.

Why it matters

The initiative aims to provide more housing options for residents facing rising real estate prices. This approach reflects efforts to improve housing affordability amid high investment ownership in the local rental market.

Accessory dwelling units are currently limited to 800 to 1,000 square feet or 75% of the primary dwelling. Existing zoning allows eight units per gross acre in MH-8 areas, with height limits ranging from 18 to 32 feet depending on the structure.

The players

Coeur d'Alene City Council

The governing body responsible for setting municipal ordinances and land-use policies for the city of Coeur d'Alene.

Kalispell City Council

The legislative body in Kalispell that recently updated its municipal code to officially permit the construction of tiny homes.

The details

Currently, tiny homes are prohibited in the city unless they are attached to a foundation and comply with existing building codes. Officials are reviewing the frameworks established in Boise, Moscow, and Kalispell, which have already integrated tiny home neighborhoods or specific zoning into their municipal codes.

July 1: State short-term-rental permit regulations took effect.
October 2026: City officials discussed tiny home zoning requirements.

Culture Shift

This move toward tiny home adoption follows the implementation of the July 1 state short-term-rental permit regulations. It signals a broader shift in local planning as cities attempt to reclaim housing stock for residents from markets dominated by out-of-state investors.

Residents may see new opportunities for smaller, more affordable housing options if the proposed code amendments are successfully adopted. Prospective homeowners could gain additional choices for accessory dwelling units or tiny home residential living within city limits.

The takeaway

Tiny homes offer a potential pathway to increasing residential density in established neighborhoods. Homeowners should stay informed on municipal updates to see if these zoning changes could allow for new dwelling types on their property.