This invention provides a skin substitute comprising epithelial cells and modified mesenchymal cells, wherein the modified mesenchymal cells have decreased TSC1/TSC2 function, increased mTORCI function, and/or decreased mTORC2 function compared to wild type mesenchymal cells, and methods for using the same. This invention also provides a method for transplanting cells capable of inducing hair follicles, comprising subdermally or intradermally delivering to a patient modified mesenchymal cells, wherein the modified mesenchymal cells have decreased TSC1/TSC2 function, increased mTORCI function, and/or decreased mTORC2 function compared to wild type mesenchymal cells.
