Adaptive Reuse Hits Record 25K Apartments in 2024

By Alexandra Both for Market Share Blog | December 2, 2025

Adaptive reuse projects surged to historic levels in 2024. Nearly 25,000 apartments were completed from converted structures across the U.S., a 50% jump over 2023 and double the total in 2022, a RentCafe.com report shows.

The trend shows no sign of slowing. Another 181,000 apartments are currently in the pipeline, most from former office buildings, reflecting how developers are reimagining obsolete spaces to meet housing demand.

HOTELS DOMINATE, OFFICES FOLLOW CLOSELY

Hotels once again led the charge in adaptive reuse. More than 9,100 new apartments came from converted hotels in 2024, representing 37% of all reuse projects – a 46% increase from the year before.

This shift stems from ongoing pressure on the hospitality sector: slimmer margins, rising costs, slow recovery in travel, and looming debt. Many owners opted to sell or repurpose underperforming hotels, especially Class B and C properties, which made up 93% of last year’s conversions.

Meanwhile, office-to-apartment projects accounted for nearly a quarter of new units. That amounts to about 5,900 apartments, up 34% year over year. Interestingly, seven out of 10 projects came from Class A office buildings, which are easier to adapt thanks to modern layouts and infrastructure. These premium conversions often target renters seeking upscale city living.