"More buildings are being converted into apartments in the U.S. than ever before, and it's not just old offices that are finding new use. After the COVID-19 pandemic disrupted relocation patterns and work arrangements nationwide, suddenly vacant city office space seemed like prime real estate for housing. But it's actually hotels more than any other building type that are driving the spike in conversions now: Hotels made up 37% of all apartment conversions in 2024,"
"The process for redesigning a hotel into a residential space is much more streamlined by comparison, as it already has a base infrastructure of single unit residences, much like the apartment complex it will become. That similarity suggests that converting the space would require less rewiring, less HV/AC installation, less tear downs, and less time and money for the developer."
Apartment conversions in the U.S. reached a record 24,735 completed units in 2024, a roughly 50% increase from 2023's 16,513, with 181,000 conversions currently in development. Hotels accounted for 37% of conversions in 2024, offices 24%, industrial 19%, schools 8%, and other 12%. Hotels are easier to convert because they already have single-unit layouts, reducing the need for extensive rewiring, HVAC installs, demolition, time, and developer cost. Office conversions face obstacles such as utilities not wired for multifamily use and lack of windows that can fail residential bedroom codes. Economic pressures and rising hotel operating costs also encourage repurposing.
Read at Fast Company
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