Former school buildings are experiencing a new wave of conversions into apartments, a trend that is rapidly gaining momentum. In 2024, nearly 2,000 apartments were established in old schools across the U.S., marking a record high and a fourfold increase from the prior year. This makes school-to-apartment conversions the fastest-growing segment within the niche industry of redeveloping historic spaces.
This phenomenon is largely spurred by a nationwide decline in student enrollment, leading many school districts, including Atlanta, to close or consolidate schools. Maintaining underenrolled schools, especially those with only a couple hundred students, can be a financial drain. For instance, districts in Houston, Memphis-Shelby, and Cedar Rapids have recently announced or discussed closures, necessitating decisions on the future of these vacant buildings. Between the 2018-19 and 2021-22 school years, 12% of elementary schools and 9% of middle schools saw a student loss of at least one-fifth.
Developers are attracted to former schools due to their unique architectural features, such as tall ceilings, large windows, and historic charm. Renovating these existing structures is seen as a way to maintain them as community assets, as highlighted by Patrice Frey, president and CEO of RePurpose Capital. Conversions also help mitigate issues like neighborhood blight and increased crime rates associated with abandoned buildings. For example, in Gary, Indiana, abandoned schools were linked to a 600% increase in 911 calls between 2022 and 2024, involving fires, requests for police patrols, and reports of "shots fired."
Cities and developers are embracing this trend as a solution for repurposing vacant spaces into much-needed housing, including affordable options. The Atlanta Public Schools, for instance, is repurposing eight sites, including Lakewood Elementary, through an agreement with the Atlanta Urban Development Corp. This initiative, part of Mayor Andre Dickens's pledge to increase affordable housing, aims to give teachers first choice for apartments. Columbus, Ohio, leads RentCafe's list of cities with the most school conversion projects. While offering benefits, these conversions also spark concerns about gentrification and displacement of lower-income families, particularly in rapidly developing areas where real estate costs are climbing.
Financial incentives, such as state and federal historic preservation tax credits, play a crucial role in making these complex and often expensive conversions viable. Renovation projects, including historic preservation, surpassed new construction in 2022 for the first time since the Great Depression, influenced by supply chain issues and escalating material costs. Developers note that school buildings often offer more natural light, a desirable feature for renters, compared to offices or new constructions. According to RentCafe, school-to-apartment conversions constituted 7.9% of all adaptive reuse apartments in 2024, up from just 3% the previous year, demonstrating its rapid growth in the market.
