Converted Apartments Up 25% from Pre-Pandemic NumbersBy RISMedia Staff
With mortgage rates hitting a historical high and more people choosing to rent, adaptive reuse–seen by many as a viable solution to bring new apartments to the market–has jumped 25% compared to pre-pandemic levels, according to a new report from RentCafe released this week.
RentCafe’s annual Adaptive Reuse Report found that converted apartments are not only hitting new heights compared to pre-pandemic years, but the pace of adaptive projects is growing faster than new apartment construction. That’s largely due to a combination of office-to-residential projects hitting an all-time high and emerging smaller niches, like former healthcare and religious buildings being converted into apartments. Key highlights:
According to the report, 77,000 converted apartments are expected to be opened over the next several years. “As a matter of fact, nowhere is the future development of adaptive reuse more evident than in Los Angeles, where a total of 4,130 apartments resulting from conversions are expected,” said Andrea Neculae, a creative writer for RentCafe and author of the report. “As many as 1,242 apartments came online between January and June in Los Angeles, making this year the best one in the last decade. “Existing building architecture is the critical starting point. Not all buildings are equally threatened by the work-from-home revolution. Larger office buildings in abandoned central business districts are better suited to conversion than the often-smaller office complexes distributed around the suburbs,” said Doug Ressler, manager of business intelligence at Yardi Matrix. For the full report, click here. |
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