Record-breaking number of apartment conversions underway

A record-breaking 180,585 apartments from adaptive reuse projects are in development in the U.S., mostly from office spaces, according to RentCafe.

That total is up 19% compared to last year. Nearly 25,000 apartments were completed via adaptive reuse in 2024, a 50% gain from 2023 and double the amount in 2022.

Hotels were the top category for adaptive reuse projects in 2024, though office conversions were still popular, comprising nearly one quarter of all new units. More than 9,100 of the 24,700 converted apartments completed last year came from repurposed hotels—an all-time high and a 46% increase over 2023.

Office conversions still showed strong interest with seven out of 10 delivered in 2024 coming from class A buildings. Offices with fewer amenities (class B and C) accounted for just 28% and 1%. Newer, high-quality buildings offer big advantages for conversions, with modern infrastructure and locations that are attractive for luxury apartment projects.