Multifamily Minute Reader Reflections: Are Multifamily Conversions Truly Viable?
In light of some recent high-profile news, we asked our readers to give their thoughts on apartment conversions.
Start Your Application and Unlock the Power of Choice$5.6M offered by a Bank$1.2M offered by a Bank$2M offered by an Agency$1.4M offered by a Credit UnionClick Here to Get Quotes!Last week, we asked our Multifamily Minute subscribers for their thoughts on conversions as a way to address the country's housing crisis.
Why?
Well, at the time, some news had just broken about the owner of Atlanta's CNN Center. CP Group had said they were strongly considering converting some of the 1.2 million-square-foot property into multifamily units.
These multifamily conversion projects tend to be in the spotlight quite a bit. But are they viable solutions to our housing shortage?
Survey Results
The answer you all came up with was…maybe. Nearly two-thirds of our readers said that they could do a lot to breathe life into underutilized buildings and neighborhoods. The full results are below.
Response | Percent of Respondents* |
|---|---|
Conversions could bring buildings/neighborhoods back to life | 64% |
They're an innovative way to create housing | 57% |
The units probably wouldn't be affordable | 36% |
They're too expensive to implement widely | 29% |
Zoning and other regulations would be a barrier | 14% |
Other | 28% |
* Respondents could select multiple responses, so percentages will not add up to 100%.
From your responses, we can draw a couple probable conclusions about sentiment:
First, conversions tend to have a pretty hefty price tag, and so we can't assume they'll exactly solve America's housing shortage and affordability crises. Still, the development of more units — even luxury ones — should ease some pressure.
Second, multifamily conversions are…just kinda cool. It's easy to see why: Put yourself in the context. In your area, there's undoubtedly some eyesore, whether it's a dated office building or some shuttered hotel or motel. Imagining these buildings reborn as apartments changes the whole neighborhood.
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Our Previous Survey
If you're curious about the previous week's survey and analysis, we talked about how multifamily costs are on the rise. More importantly, though, we asked our readers where they're seeing costs increase the most.