Cities Converting Old Hospitals Into Housing
Closed hospitals, with ideal features for housing, are being converted due to low inventory. In 2023, hospital conversions received $161M in tax credits.
NEW YORK — In areas that have low housing inventory, shuttered hospitals and the surrounding property are prime targets for conversions.
With wide hallways, tall ceilings and abundant natural light, many closed hospitals have features that make them good housing conversion candidates. Hospitals also are generally located near city infrastructure, which is ideal for residences.
A Wall Street Journal analysis of data compiled by the National Trust for Historic Preservation found that in 2023, spending on conversion projects that were eligible for a 20% federal historic tax credit totaled more than $225 million. Of that figure, hospital conversions received tax credits for $161 million in expenses.
With more than 700 hospitals at risk of closing, the pool of hospital conversion candidates, particularly in rural areas, could rise, according to the Center for Healthcare Quality and Payment Reform. In rural towns, hospital conversions into residential units could improve economic conditions in those regions. However, the U.S. housing market is short by millions of units, and closed hospitals are unlikely to solve the entire shortage.
Source: Wall Street Journal (02/18/25) Mehta, Neil
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