realestate

Can office conversions solve urban housing shortages?

Proposal aims to convert vacant office space into affordable apartments nationwide.

A
potential solution to the US housing crisis involves converting empty office spaces into tiny apartments for rent. These micro-units would be approximately 150 square feet, roughly the size of a college dorm room, with shared living rooms, kitchens, bathrooms, and laundry facilities on each floor. This concept is not new, but pairing it with vacant offices could address both affordability and supply issues.

    About 20% of office buildings remain empty four years after the pandemic, while millions of affordable housing units are needed. By concentrating plumbing and kitchens in central locations, construction costs can be reduced by 25-35%. The proposed microapartments would have large windows but accommodate three times as many units as a typical apartment building.

    A report assessed the feasibility of this conversion in Seattle, Denver, and Minneapolis, all cities with high median rents, vacant office space, and homelessness issues. The apartments would cost around $850, less than half the current median rent in Denver. Pew and Gensler believe these microapartments could appeal to a range of tenants, including elderly residents, recent migrants, and governments seeking affordable housing for the homeless.

    While not a complete solution, this approach adds affordable housing supply at the lowest price point, which is often the hardest to satisfy. It also has the potential to revitalize commercial areas and reduce greenhouse gases by encouraging public transit use or walking. Initial conversations with developers suggest interest in the idea, but further details need to be worked out.

Office building conversion into residential units in urban cityscape with construction equipment.