The demand for adaptive reuse apartments has been on the rise, surpassing the growth of new apartments by 25% in the last two years. Conversions from office buildings to apartments have reached an all-time high, resulting in the creation of 11,000 apartments in just the last two years. With 77,000 apartments currently undergoing conversion, the stage is set for a boom in adaptive reuse in the coming years. This trend has been particularly prominent in major cities like Washington, D.C., Philadelphia, and Chicago. Office buildings remain the dominant building type for adaptation, but smaller niches like factories and healthcare buildings are also gaining traction. The future of adaptive reuse looks promising, with a projected 77,100 apartments expected to be converted in the next few years. Los Angeles leads in apartment conversions in 2022, with the city experiencing its best year ever for adaptive reuse.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Increasing adaptive reuse apartments | Faster growth in adaptive reuse compared to new apartments | More adaptive reuse apartments, increased housing density | High demand for housing in urban areas |
| Conversions from office buildings to apartments at an all-time high | Increase in office-to-apartment conversions | More office buildings converted to apartments | Need for repurposing vacant office space and increasing housing supply |
| 77,000 apartments under conversion | Anticipated boom in adaptive reuse | Significant growth in adaptive reuse apartments | Demand for housing and repurposing of existing buildings |
| Washington D.C., Philadelphia, and Chicago lead in adaptive reuse | Hotbeds for adaptive reuse | More adaptive reuse projects in these cities | High demand for housing in urban areas |
| Different building types being converted into apartments | Shift in building types for adaptive reuse | More diverse range of building types being converted | Desire for live/work/play spaces and repurposing of vacant buildings |
| Future projections of adaptive reuse projects | Anticipated increase in adaptive reuse projects | More adaptive reuse apartments in various cities | Demand for housing and repurposing of existing buildings |
| Los Angeles leads in apartment conversions in 2022 | Increased apartment conversions in Los Angeles | More adaptive reuse apartments in Los Angeles | High demand for housing in the city |