Friday, May 30, 2025

Latest

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.

Leave a Reply

Video Articles

How To Profit From $3300 Gold? An Inside Look At A Massive 300,000 Oz Project | Martino De Ciccio

We’re At The Start of a Great Silver Boom | Ross McElroy & Andy Bowering – Apollo Silver Corp

Equinox Gold Q1 Earnings: When Everything Goes Wrong

Recommended

Sterling Metals Hits 0.21% Copper Over 482.8 Metres In First Drilling At Soo Copper project

First Majestic Makes Second Major Discovery At Santa Elena In Just A Year

Related News

Number of US Mortgages Entering Forbearance Programs Beginning to Show Signs of Decrease

It looks as if the housing industry is slowly beginning to rebound from the financial...

Wednesday, May 20, 2020, 02:19:00 PM

Pending US Housing Crash? JPMorgan Chase To Require 20% Down Payment On New Home Sales

By all accounts, it appears that another real estate crash across the United States is...

Sunday, April 12, 2020, 11:47:00 AM

Fraud-Riddled Ontario Real Estate Developer Defaults On Payments To Fortress Victims

Ontario-based real estate developer Sunrise Homes finds itself in a precarious situation, having defaulted on...

Wednesday, October 11, 2023, 02:51:00 PM

Campaign Promise Broken: Biden Administration OKs Willow Project

The Biden administration has approved the huge Willow oil drilling project in Alaska, infuriating environmentalists...

Tuesday, March 14, 2023, 04:28:00 PM

China Evergrande Trading Halted Pending Announcement from Company

Lets not forget about China Evergrande just yet! On Monday, Reuters reported that trading of...

Monday, March 21, 2022, 03:05:00 PM