Office-to-residential conversions hit record high in 2025
By Quinn Purcell, Managing Editor
Office-to-residential conversions are climbing to new heights in the new year. According to a recent RentCafe report, a record-breaking 70,700 apartment units are set to emerge in 2025 from office conversions.
These office-to-residential buildings now make up nearly 42% of the 169,000 apartments created from adaptive reuse projects. This shows that office-to-res conversions still remain a practical response to the reshaping of the post-pandemic workplace.
"More than just creating housing, this trend reflects a shift toward sustainable, community-focused urban spaces that cater to the evolving lifestyles and priorities of modern American cities," writes Florin Petrut, Creative Writer, RentCafe.
This trend has only been growing in recent years. In 2022, the number of upcoming office-to-residential conversions totaled 23,100 units. The figure doubled to 45,200 in 2023, then rose again to 55,300 in 2024. It's now at al all-time high in 2025 with 70,700 offices expected to be converted.
Office-To-Residential Conversions by Metro in 2025
Where in the U.S. are we seeing the most apartment-to-residential conversions happening in 2025? Leading the charge is New York, N.Y., with 8,310 units in the works, followed by Washington, D.C. (6,533), and Los Angeles, Calif. (4,388).
To encourage more conversion projects, many cities are offering financial incentives and simplifying the process. For example, in New York City, buildings that are converted and include at least 25% affordable units can receive tax exemptions of up to 90%.
Similarly, Washington, D.C., has a Housing in Downtown program that provides 20-year tax abatements for converting commercial properties into residential ones.
To read the full findings of the report, visit RentCafe.com