Adaptive reuse apartments have seen a surge nationwide in the previous year, setting a new trend. In 2024, nearly 25,000 apartments were completed through adaptive reuse projects. Manhattan is emerging as the top city for adaptive reuse apartment conversions.
Surge in Adaptive Reuse Apartments Revealed in Latest Report
Affordable housing challenges remain a major concern, but adaptive reuse apartments are helping cities meet growing demand. This approach, converting existing buildings into apartments, has grown rapidly in recent years
New data from RentCafe show a sharp rise in adaptive reuse apartments nationwide. The number of apartments converted from buildings last year was close to 25,000. It is 50% more than the units delivered in 2023 and double the figures in 2022 nationwide.
These figures continue to grow, and looking ahead, nearly 181,000 apartments are now being converted. In 2024, hotels made up the largest share of conversions, but office buildings are expected to lead the next wave. But the new wave shows that office buildings will soon take over the majority of these numbers.
In 2024, Chicago became the new leader in adaptive reuse projects. It overtook Manhattan and was one of the most active cities when it came to repurposing buildings. Manhattan fell to fifth with 588 units last year, but it leads the pipeline for upcoming conversions.
Manhattan remains the top city for office-to-apartment conversions. The numbers continue to rise as the growth story of this trend is far from over.
Manhattan: A Future Leader for Adaptive Reuse Apartments
The adaptive reuse apartments trend may have accelerated in 2024, but it is only the beginning. The analysis from RentCafe.com, based on Yardi Matrix data, reveals another rise. Around 181,000 apartments are currently in various stages of development nationwide. It reflects a 19% increase in adaptive reuse apartments compared to 2024.
Most of these conversions come from office buildings. About 430 properties are in the works, expected to deliver more than 78,400 apartments. Manhattan continues to lead in office-to-apartment conversions.
Nearly 9,000 office-to-apartment conversions are in the pipeline in Manhattan. Moreover, the city is also leading the way with hotel-to-apartment conversions. Seven properties have been slated for repurposing and will deliver more than 1,700 units.
Manhattan is becoming the center of attention with these numbers. With 11,000 units in the pipeline, Manhattan is poised to lead the nation in adaptive reuse apartments.
