Thursday, July 31, 2025

Biden Administration Launches Initiative to Convert Vacant Offices into Affordable Housing

The White House has launched a multi-agency initiative aimed at repurposing vacant office buildings into affordable housing. The program leverages the availability of $35 billion in low-cost loans from the Transportation Department to support housing projects near transportation hubs. This effort aligns with the Biden administration’s clean-energy agenda.

The initiative also introduces additional funding sources, tax incentives, and offers guidance on accessing 20 federal programs to aid real-estate developers in the often complex and costly process of converting office spaces into housing. 

Moreover, the federal government will compile a public list of its own buildings that could be sold to support development.

Transportation Secretary Pete Buttigieg emphasized the potential of downtowns and central business districts, which are frequently designed around public transit, to reduce both housing and transportation costs.

National office vacancies in the US have reached nearly 25%, significantly higher than the 8% vacancy rate in Europe, with certain cities like San Francisco experiencing even higher rates due to plummeting property values and mortgage loan defaults.

Despite the abundance of underutilized office buildings available at lower prices post-pandemic, financing for residential conversions has been limited, mainly due to rising interest rates since the Federal Reserve’s efforts to combat inflation. Uncertainty about office space needs and costs further complicates the situation.

Related: New York City Unveils Plan to Convert Vacant Offices into Housing Units

With the federal government owning approximately 1,500 office buildings nationwide and leasing nearly 200 million square feet of additional space, the White House’s initiative offers a unique opportunity to revitalize obsolete buildings and increase the housing supply.

Developers participating in the program will have access to $10 billion allocated to the U.S. Department of Housing and Urban Development’s community development block-grant program. 

Housing and Urban Development Deputy Secretary Adrianne Todman emphasized the importance of utilizing all available resources to address the nationwide housing shortage, which will, in turn, help stabilize rent levels and purchase costs.

New York City Mayor Eric Adams announced a similar plan in August. The initiative aims to produce as many as 20,000 new housing units. 


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Why Gold’s Bull Run May Just Be Getting Started! | Peter Grandich

Tariffs Spark New Race for Critical Metals | Rob McEwen

Antimony Resources: The Bald Hill Project

Recommended

Tsunami Warnings Spread As Largest Quake Since 2011 Hits Russia

Northern Superior Intersects 1.75 g/t Gold Over 65.0 Metres At Philibert

Related News

US House Prices Soared by Most on Record in June

Home prices across the US skyrocketed to yet another record in June, as buyers continued...

Monday, September 6, 2021, 05:07:00 PM

30% of Americans Failed to Make June Housing Payments

Although there are some indicators that the US economy is beginning to show initial signs...

Tuesday, June 23, 2020, 04:22:00 PM

A Week Before Trump Transition, Biden Team Proposes Sweeping AI Chip Controls

The Biden administration proposed new controls Monday over the export of advanced AI computer chips,...

Tuesday, January 14, 2025, 12:59:00 PM

US Existing Home Sales Unexpectedly Fall for Third Straight Month

Sales of existing homes fell for the third consecutive month in April, as low inventories...

Sunday, May 23, 2021, 05:03:00 PM

US Home Prices Jump by Most Since 2006, Outpacing Fed’s Inflation Target

Home prices across the US rose by the most since 2006, as low mortgage rates...

Tuesday, April 27, 2021, 05:09:00 PM