The Economics and Politics of Office-to-Residential Conversions

The pandemic has led to a surge in office vacancies in big cities, prompting a growing trend of office-to-residential conversions. Proponents argue that these conversions can address the housing shortage, reduce greenhouse gas emissions, and revitalize cities. However, there are challenges such as architectural complications, regulatory hurdles, and the need for a strong rental market. The U.S. government is supporting these conversions through federal programs, and cities are exploring zoning changes and tax incentives. Developers are finding conversions financially feasible in markets with high apartment rents. The conversion process is faster and more cost-effective compared to ground-up developments.