The present master’s thesis discusses the scope of housing. The spatial development objectives are to ensure high-quality living environment, adequate housing standards, densification of the city and renovation of existing buildings. In Slovenia, there is an upward trend in the number of households with a decreasing number of household members. Many apartments are overcrowded, but there are also many vacant dwellings. In recent years there has been a significant decline in the construction and sale of housing units. The existing housing stock is old and worn out. On the other hand, there are a lot of old houses in need of renovation, which represent a great potential for the provision of new housing units. This master’s thesis investigates the hypothesis that a renovation of existing buildings could ensure more residential units. In this way it would be possible to preserve and refurbish the existing building stock and reduce the need for the new dwellings. Furthermore, we would renovate buildings from functional, design and energetic aspect, raise the quality of life and enforce the principles of sustainable development. In the master’s thesis we have connected areas of housing typology and affordable housing. In the main survey we have compared the investment costs for different types of housing units and types of intervention. The research shows that the most appropriate type of housing is a low-rise house with few apartments. The result of the master’s thesis is a verification of placement of proposed type of housing into the site and proposal of urban planning rules, which could be used in planning documents.