Vacant motels, shuttered strip malls, and underused office buildings across Arizona could soon find new life—as housing. A recently enacted adaptive reuse law is giving cities the flexibility to convert commercial properties into apartments and affordable homes, a move that could help ease the state’s growing housing shortage.
According to Arizona Multihousing Association President and CEO Courtney LeVinus, the law has the potential to generate $61 billion in economic activity and create as many as 150,000 new housing units statewide.
“This policy is a game-changer for Arizona,” LeVinus said. “It allows cities to transform forgotten properties into thriving communities while expanding housing options for residents.”
In Tucson, three adaptive reuse projects are already underway, converting vacant commercial spaces into affordable, revenue-generating housing for hundreds of residents. The projects illustrate how local governments and developers can work together to revitalize blighted areas without requiring new land or infrastructure.
The initiative reflects a broader trend across the country, as states seek creative solutions to tackle housing shortages by reimagining obsolete retail and office spaces.
Read the full Arizona Housing Trend Report here.
