Gensler, in collaboration with The Pew Charitable Trusts, has unveiled a forward-thinking approach to address America’s deepening housing affordability crisis: the conversion of underutilized office buildings into flexible co-living residences.
The initiative was part of a comprehensive study across nine U.S. cities — Denver, Minneapolis, Seattle, Los Angeles, Houston, Washington, D.C., Chicago, Albuquerque, and Santa Fe. These cities were chosen based on rising housing costs, high homelessness rates, and vacant downtown office properties, making them ideal candidates for adaptive reuse.
The study proposes a modern co-living typology, reimagined from the once-common single-room occupancy (SRO) housing model that housed millions in mid-20th-century cities. While SROs were eventually eliminated due to changing zoning and building codes, their affordable, flexible structure has inspired this new model of compact, shared living.
“This concept not only addresses the housing crisis but also offers a second life to buildings left vacant by the post-pandemic shift in office demand,” noted the Gensler team.
Each converted floor would include private micro-units with locking doors, surrounded by shared kitchens, bathrooms, laundry, and living spaces — optimizing privacy and affordability. Gensler worked with Turner Construction to assess construction and labor costs, while also creating financial feasibility models for the proposed conversions.
Key findings include:
- Using existing plumbing infrastructure (from office kitchens and restrooms) reduces construction costs by 25% to 35% per square foot compared to traditional residential conversions.
- These compact units offer large windows and private spaces, tripling the potential apartment count compared to conventional designs.
- In every city studied, 38% to 58% of renters are single-occupant households, pointing to strong demand for such housing.
While the concept may require some public subsidy, the cost-efficiency per affordable unit produced is significantly greater than current models. The proposed units would serve students, service workers, veterans, retirees, and newcomers, providing housing in transit-connected, job-rich urban cores.
In Santa Fe, where downtown office stock is limited, Gensler and Pew instead explored a ground-up co-living concept, revealing how this model can scale beyond conversions into new developments.
“This model allows cities to respond to changing real estate demands while directly addressing one of today’s most urgent urban challenges — housing affordability,” the report concludes.
As policymakers and cities look to boost affordable housing supply, flexible co-living may offer a cost-effective, scalable, and human-centered solution that adapts to both economic realities and the evolving needs of urban dwellers.
