Kitchener council approved a bylaw change on Tuesday night that will allow tiny, backyard homes to be built on some properties.
The city says the list of properties where the tiny homes can be built includes low-rise residential and semi-detached duplex dwellings.
In addition to tiny homes, the bylaw allows for coach homes and laneway suites, among others.
The city estimates that about 25,000 of the 57,000 properties in the region would qualify to be allowed to build additional dwelling units.
Some of the proposed zoning regulations included a lot width of at least 13.1 metres, a lot area of at least 395 square metres. The lot also must have full municipal services.
In 2019, the province required municipalities to allow for these types of dwellings to be constructed.
The move is an attempt to create more affordable housing and rental units in an era where these are in high demand and low supply.