Feb 22, 2025 - Business

Office-to-apartment conversions keep rising

Sami Sparber

A column chart shows the annual expected U.S. apartment units from office conversions as of January of each year from 2022 to 2025. In 2022, 23,100 units were projected, increasing to 45,200 in 2023, 55,300 in 2024 and reaching 70,700 by 2025. — Data: RentCafe analysis of Yardi Matrix data; Note: Includes under construction, planned and prospective conversions for apartment buildings with at least 50 units; Chart: Axios Visuals

The pipeline for new apartments in old offices is growing.

Why it matters: Converting offices is easier said than done, but cities and developers see it as one of the best ways to reduce vacancies while adding housing.

Between the lines: Such flips take time, money, and, often, government help.

Developers completed less than 7% of office-to-apartment units underway in 2024, pushing most into 2025, according to a recent RentCafe report.
Meanwhile, thousands of new conversions have been proposed.

A table showing 20 U.S. metro areas with the most office-to-apartment conversion projects in progress as of January 2025. New York leads with 8,310 units in the works, a 59% increase from the previous year. The next-highest metros are D.C., Los Angeles and Chicago. Boston has seen the greatest year-over-year increase, at 160%, while Cleveland has seen the greatest decrease at -20%. — Data: RentCafe analysis of Yardi Matrix data; Note: Includes under construction, planned and prospective conversions for apartment buildings with at least 50 units; Chart: Axios Visuals

What's next: The New York, Washington, D.C., and Los Angeles metros are set to see the most office-to-apartment conversions in the coming years, per the report.

Go deeper: How old schools are turning into homes

Add Axios on Google

Office-to-apartment conversions keep rising

What to read next