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When you think of “planning innovation,” you might picture big metros. But a small city in Minnesota just flipped that script. On December 3, local leaders in New Ulm approved a mix of “experimental” housing: tiny homes, shed-houses (small independent units), and a 148-unit apartment building. For a town of roughly 14,000 people, that’s not small potatoes.
According to city staff, the move was deliberate. Instead of restricting development or resisting change, they decided to say yes to a variety of housing forms, even the ones that might seem unusual or “out there.” The idea: give people real choices beyond the standard big-lot, single-family home.
That matters. With changing demographics and increasing interest in affordable, flexible housing, offering tiny homes or shed-houses can offer alternatives for seniors, young adults, and workers who don’t need or can’t afford a conventional house. Mixed-type development can also make infrastructure use more efficient, and prepare the town for future population shifts.
This decision isn’t just about approving buildings. It reflects a mindset: treating housing not as a commodity, but as a public need. It says small towns can lead on housing diversity, just like big cities maybe even better, because they start from lower density and can shape growth more intentionally.
For planners and city leaders, New Ulm is a quiet signal: don’t wait for crisis. Try new things now. Let creativity meet demand especially in places people always say are “too rural” for anything but cookie-cutter houses.