In some cities in the United States, where there is a shortage of dwellings, there is a movement to convert old hospitals into residential buildings. This generally utilizes the advantages of hospitals located near urban infrastructure facilities, and the government is actively supporting hospital renovations by providing incentives.
According to the Wall Street Journal (WSJ) on the 18th (local time), Lakeview, Michigan, is pursuing a plan to convert the Kelsey Hospital, which closed in 2023, into dwellings. The local administrator, Darin Dood, has already met with two real estate developers to discuss converting Kelsey Hospital into condos or townhouses. Kelsey Hospital sits on a 2-acre (8,094㎡) site.
WSJ noted, "Lakeview is attempting to convert former hospital spaces into condos or townhouses amidst the housing shortage that began with COVID-19," adding that "the converted dwellings will help accommodate many teachers working in the village's middle and high schools."
In San Francisco's Presidio Heights, plans are being considered to convert the California Pacific Medical Center campus into hundreds of APT.s. Real estate developer Prato plans to reuse one of the campus buildings and convert it into senior housing. In Queens, New York, there is also an attempt to convert Creedmoor Psychiatric Center into over 2,000 residential units.
Queens Borough President Donovan Richards said, "The Creedmoor Psychiatric Center site has essentially been abandoned and was a blemish on our community," noting that while it would take time to convert the hospital into dwellings, he hoped this project would help solve Queens' housing shortage.
Hospitals are becoming a primary target for cities facing shortages of dwellings. The architectural features of hospitals, such as high ceilings, wide hallways, and abundant natural light, make them suitable for conversion into residential buildings. There is also a movement to convert offices into dwellings, particularly in urban centers, but hospitals are considered easier to renovate than offices with plumbing issues.
Christopher Korsch of the global design and architecture firm Gensler said, "The structure of hospitals is suitable for conversion into dwellings." Each patient room has its own bathroom, and the plumbing is located in the periphery rather than the center of the building, making renovations simpler and more cost-effective.
As more hospitals close due to economic downturns, the movement to renovate hospitals is expected to become more active. According to a nonprofit organization studying the provision of healthcare services in the U.S., more than 700 hospitals are currently at risk of closure. Notably, converting hospitals in the suburbs is also being highlighted as a way to revitalize these areas.
The U.S. government is actively supporting projects that convert hospitals into dwellings. An analysis of data from the National Trust for Historic Preservation by WSJ revealed that $225 million was allocated to support tax deductions for hospital renovation projects during 2023. The U.S. government offers a 20% tax deduction benefit for projects utilizing historic buildings.
Some dwellings converted from hospitals are fetching high rents on the market. The monthly rent for APT.s converted from St. Luke's Hospital in the Morningside Heights area of New York was more than $1,500 (about 2.16 million won) higher than the average in the area.