The next in-demand apartment could be inside an old Denver school.

The big picture: Former schools accounted for 3% of U.S. apartment conversions in 2023, data shared with Axios shows.

• Former offices and hotels dominate the national conversion trend, comprising 28% and 36% of newly completed projects, according to a RentCafe analysis.

Why it matters: As cities and developers seek to repurpose empty space into much-needed housing, a mix of building types are on the table.

Zoom in: Denver led school-to-apartment conversions compared to other metros between 2019 and 2023, Rentcafe data shared with Axios show. Colorado ranks among the top states for these conversations.

• A few years ago, architect and developer Jim Hartman helped transform Fruitdale Elementary in Wheat Ridge into apartments — a portion of which are reserved for affordable housing.

While turning cafeterias and gyms into homes is easier said than done, state and federal historic preservation tax credits can incentivize school flips.

• School buildings can also offer more of the natural light renters want, compared to offices, developers say.

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At Art Studios apartments, you can live in a former art school in Capitol Hill.

Flashback: The building dates back to the 1960s, and it was mostly recently the Art Institute of Colorado. Nichols Partnership bought the property in 2019 and it was ready for renters in August 2023.

Art Studios has loft-style apartments, starting around $1,320 a month for a studio and $1,850 for a one-bed.

• Built with artists in mind, there's a community makerspace for 3D printing, photography and other arts and crafts.
• Other amenities include a dog run and dog washing station, free laundry and a bike barn.

In 2023, U.S. apartment conversion projects were up 17.6% from the year before, per the RentCafe analysis.

Flashback: After stalling amid the 2008 recession, so-called adaptive reuse projects picked up in the 2010s, partly because of new financing incentives and the increasing need for affordable housing options, researchers say.

Between the lines: Businesses closing or downsizing during the pandemic also created many vacant commercial spaces, sparking a surge in adaptive reuse projects.

What's next: Around 150,000 apartment conversions are in development, with over one-third from former office spaces, RentCafe found.

Heads up — we're writing about Gen Z's homeownership aspirations.

• Zoomers, what's your take on renting versus buying? Are you saving up for a down payment?
• Homeowners, what's your advice for first-timers?

Email [email protected] or hit reply with your name and neighborhood. We may feature your insights in an upcoming newsletter.