Detroit’s Apartment Conversions Took Off in the Last Decade

Would you consider living in an old cotton mill or gramophone factory? As adaptive reuse projects are gaining ground in the U.S., finding an apartment in a historical reconditioned building is easier than ever. In the last decade, apartment conversions reached an all-time high, as 800 old structures were restored into almost 97k modern units.

RENTCafé dug into Yardi Matrix data to see where apartment conversions were most common, going back as far as the 1950s. Based on our findings, Detroit has 27 old buildings reconditioned into apartment communities.

Surge in apartment conversions reaches all-time high in the 2010s

Compared to the 1950s, when adapted apartment buildings were extremely rare, the 2010s saw 55 times more old buildings converted to apartment communities. That’s a leap from just 14 projects in the ’50s to 778 conversions last decade — a number that has been increasing rapidly, especially since the 1990s. The same upward trend is confirmed by the number of apartments in repurposed buildings — from about 2,000 rental units in the ’50s to almost 97,000 units opened in converted structures last decade. In total, there are now more than 240,000 apartments for rent in large converted buildings in the U.S.

65% of converted buildings aimed at middle- & lower-income renters

A large share of the converted apartment buildings (65%) is on the affordable side. Specifically, as many as 42% of conversions are oriented toward middle-income renters, while 23% are accessible to low-income residents.

Chicago boasts the highest number of converted apartment buildings

In terms of repurposed apartment buildings, Chicago holds the top spot nationally with 91 (see these projects mapped here). Among them are historical staples like the Victorian-era Pine Grove Manor or the classically revived The Flamingo by Lake Michigan, both of which were previously hotels.

Factories were the most popular conversions over the past 7 decades

Since the ’50s, factory conversions have given new life to 442 apartment buildings nationally. That’s because manufacturing structures, foundries, mills and even vintage breweries incorporate the open space floor plan that both developers and residents so crave. The 2000s, in particular, saw the potential that old factories had to offer, resulting in 122 residential buildings, including The Victor in Camden, N.J. Once a symbol of recorded sound in America, the building is a true time capsule that proudly displays memorabilia, and still treasures its grand piano and antique gramophone.

Preferred building type to adapt varies throughout the country

With the likes of The Plaza in Detroit, former office buildings claimed as apartments are the norm. Notably, the iconic Equitable Building is Baltimore’s first skyscraper and used to be the largest office space south of NYC in the 1890s. Other cities that favor converted office buildings are Pittsburgh, D.C., Dallas, New Orleans and Cleveland.’

Detroit Highlights

• The city gained 2,908 new units by reconditioning 27 old buildings for residential use. 18 of them were repurposed for residential use in the last decade.
• A share of 66% apartment conversions is aimed at lower and middle-income renters.
• Offices are the city’s preferred building type to turn residential. Old retail stores and historic hotels were also a resource for adaptive reuse projects in Detroit.
• One of the city's oldest buildings to be repurposed for residential use is the Savings Bank Building, dating back to 1895, and currently housing Detroit Savings Bank Luxury Apartments.

You can read the full study at https://www.rentcafe.com/blog/apartmentliving/yesterdays-factories-todays-apartments-70-years-of-building-conversions-in-the-u-s/

Courtesy: RENTCafé