Office buildings across the U.S. are being rapidly converted into housing as landlords face high vacancy and looming loan deadlines.
At the start of 2026, 90,300 apartment units were underway from office conversions, up 28% from a year earlier. That figure is nearly four times higher than in 2022, showing how quickly the trend has scaled, according to BisNow.
Office projects now make up 47% of all adaptive reuse activity nationwide, reflecting how central conversions have become.
Office vacancy hovered around 19% at the end of 2025, leaving many buildings underused. At the same time, about $213 billion in office loans are set to mature by the end of 2026, forcing owners to refinance, sell, or reposition assets.
Conversions are emerging as a practical option for properties struggling to attract tenants.
Cities Push Conversions Forward
New York City leads the country with 16,358 units in progress, supported by zoning changes and tax incentives introduced since 2023.
Washington, D.C., follows with 8,479 units, while Chicago and Los Angeles each have about 4,300 underway. All four cities have introduced policies to encourage office-to-residential redevelopment.
What It Means for Work
The rise in conversions points to a lasting reset in office demand. With less need for traditional workspace, more buildings are being repurposed to match how people now live and work.
