The push to convert vacant commercial buildings into much needed housing may finally be catching on.

The increase in remote work led to an increase in commercial real estate vacancies. Many observers thought this created an opportunity to convert space into much needed housing, but red tape and reality got in the way.

Now, three years after the end of the pandemic, a pattern is emerging. According to a March 2026 report from RentCafe, an online source of news and information about the nation’s rental market, office-to residential conversions are dominating the adaptive reuse market. Adaptive reuse includes many types of conversion projects, such as converting old-school buildings to community centers, and warehouses to data centers.

Office-to-residential conversions now make up 47% of all future adaptive reuse projects planned in the United States.

RentCafe reports there are currently more than 90,000 apartment conversions in the office-to-residential pipeline. This number represents a year-over-year growth of 28%, and a 400% increase from four years ago.

The company adds that some cities, such as Los Angeles, have streamlined their approval process to allow more conversions. The California state legislature has also passed legislation.

Currently, New York City leads the nation in conversions with 16,358 apartments in the pipeline. This is about double the number of the next closest city, Washington, D.C, which has 8,479. Chicago (4,360), Los Angeles (4,340) and Dallas (3,966) complete the top five. They are followed by Denver (2,991), Philadelphia (2,697), Atlanta (2642), Cleveland (1,771) and Cincinnati (1,770).

According to RentCafe, the trend is not temporary: “What began as a response to excess office space is now a recurring feature of the housing landscape."