Apartment conversions continue to trend upward at a record pace.

Hotels continue to be the darlings of the adaptive reuse world. According to the latest report from RentCafe, former hotel buildings were 37% of all converted apartments in 2024. That's more than 9,100 of the 24,700 converted units.

Overall, conversions climbed from more than 16,500 in 2023 and 12,700 in 2022. Chicago witnessed the most conversions with nearly 900, overtaking Manhattan, which slipped to fifth behind Denver, Philadelphia and Dallas.

There are about 181,000 units in development, with more than two-fifths coming from former office buildings. Manhattan still tops that list with nearly 11,000 adaptive reuse apartments in the pipeline.