Office-to-residential conversions up 28% from last year

At the beginning of 2026, 90,300 apartments were undergoing conversion nationwide—a 28% increase from 70,600 the previous year—setting a new record for office-to-residential projects.

These adaptive reuse projects show no sign of slowing. Office-to-res conversions have been rapidly climbing over the past four years, according to the latest RentCafe report.

"What began as a response to excess office space is now a recurring feature of the housing landscape, particularly in dense cities where adding new supply can be difficult," the report states.

Share of Conversions by Building Category

Office buildings now make up the largest share of adaptive reuse activity nationwide. In 2026, they account for 47% of all planned adaptive reuse units—about 90,300 apartments out of 193,900 total projects—up from 42% the year before.

Hotels represent roughly 18% of future conversions, followed by industrial properties at 16%, while the remaining 19% is spread across other building types, including healthcare facilities, schools, retail spaces, and government buildings.

Future Office-to-Residential Conversions by City

Where in the country are office-to-res converstion happening the most?

Like in 2025, New York, N.Y., leads the country for office-to-apartment conversion projects. As of this year, New York is on track to convert 16,358 former office buildings. This is a 97% growth year-over-year (YoY) for the metro—nearly doubling its conversions from last year.

Following New York is Washington, D.C., with 8,479 conversions underway. This metro has remained in the second spot country-wide since 2025. Chicago, Ill., jumps up a spot to third place with 4,360 conversions in the pipeline. Los Angeles, Calif., follows closely behind with 4,340 units—down just one percent from last year.

Highest Climbers for Office-To-Residential Conversions in 2026

The metros that climbed the highest year-over-year are:

• Philadelphia, Pa.: Ranked seventh overall, this city raised its change of future office-to-residential conversions by 119% YoY, to a total of 2,697 units in 2026.
• Denver, Colo.: Ranked sixth overall, Denver raised its amount of office-to-res units by 114% YoY, to a total of 2,991 units this year.
• St. Louis, Mo.: Ranked 19th overall, this metro raised its share of future office-to-residential conversions by 110% YoY, to a total of 1,156 units as of 2026.

To read the full findings of the report, visit RentCafe.com