As downtown office vacancies continue to climb, Phoenix is weighing an unconventional solution to its housing shortage: transforming empty office buildings into modest, dorm-style apartments renting for about $850 a month.
The concept centers on efficiency. Instead of costly, full-scale apartment renovations, developers would convert existing offices into small private living spaces while sharing kitchens and bathrooms. By keeping plumbing, walls and mechanical systems largely intact, construction timelines and costs could drop significantly — a key advantage as housing demand continues to outpace supply.
Housing researchers say this approach could dramatically increase density. In some cases, converting an office building into shared-living units could triple the number of residences created compared to traditional apartment layouts. That efficiency, they argue, makes it possible to stretch limited public and private housing dollars further, particularly for lower-income renters who are increasingly priced out of the market.
With average rents in Phoenix far exceeding $1,400 a month, an $850 option could provide relief for students, service workers and others seeking basic, centrally located housing without long commutes.
City officials are still evaluating zoning rules, building codes and financing hurdles, but interest is growing as downtown office demand softens. Supporters say the model could help stabilize struggling commercial corridors while addressing one of the region’s most urgent challenges.
More details on the proposal and its potential impact are available through KJZZ’s reporting on the issue at kjzz.org.
