The U.S. faces a housing crisis, with a deficit of 4.5 million homes.
As a result, developers are turning to a creative solution: transforming struggling shopping malls into mixed-use spaces that include housing.
A convergence of factors drives this: the decline of traditional malls, the need for more housing, and the abundance of vacant mall space.
This approach offers some compelling advantages:
- It solves the housing shortage by creating new residential units in areas with existing infrastructure. This is especially relevant given that nearly 70% of Americans live within an hour of a struggling mall.
- It revitalises struggling malls and their surrounding communities. Converting former retail spaces or parking lots into apartments can bring new life into these areas, attracting a built-in customer base for businesses in the mall and nearby.
- It offers residents convenient access to amenities. Residents can enjoy on-site shopping, dining, entertainment, and other services without leaving the complex.
However, mall-to-housing conversions also face some challenges:
- High construction costs, which can range from $200 to $800 or more per square foot.
- Zoning laws that often need to be changed, as malls are typically zoned for commercial use, not residential.
- Design constraints, as malls often have limited windows, making it difficult to create residential spaces with sufficient natural light.
- Privacy concerns, as some units might be located in former storefronts, leaving them more exposed to the public.
Despite these challenges, the trend of converting malls into mixed-use developments with a housing component presents a creative and potentially sustainable way to address the housing crisis, reinvigorate struggling malls, and create vibrant, integrated communities.
