Small-scale rental housing offers wide-ranging public benefits and significant opportunities to spur a post-Covid economic recovery. At the same time, its informal and unregulated character poses health and safety risks, impacts service and infrastructure provision, and inhibits sustainable densification of well-located neighbourhoods. Allowing business as usual risks taking entire areas onto a ‘low road’ of overcrowding, insecurity and instability. Experts, practitioners and city officials agree that a fundamental change in approach is required.