Cuenca, Ecuador, a UNESCO World Heritage site, faces challenges related to urban expansion. The city’s growth is outpacing population needs, with high land costs and strict regulations pushing residents away from the historic center. This shift has led to a housing shortage, increased rents, and displacement. The focus on tourism has further impacted local housing needs, as resources are directed towards visitor attractions rather than local services. This research examines how the city can adapt historic buildings to better support livable, sustainable spaces for residents while maintaining its heritage.