Downtowns in the US have not traditionally been considered the appropriate place for residential use. This paper begins by highlighting previous rounds of downtown revitalization paid little attention to residential activity. The paper then discusses the reasons why this most recent round of downtown housing activity and policy that differ from previous attempts at encouraging downtown housing; success was partly due to historic preservation and a new appreciation for downtown living. The second section of the paper details some actual downtown housing building trends based on a survey of 20 selected US cities. The paper concludes with stressing the significance of including downtown housing policy as part of a larger economic development plan for older downtowns.