Newsweek - As of 2024, there were an estimated to be nearly 34 million square feet of empty retail space across the country. Meanwhile, the U.S. had an estimated housing supply deficit of 3.8 million homes, according to Realtor.com.
“The U.S. is in need of residential units. Vacant properties such as residential shopping centers and malls can provide a large structure to bring in much needed units,” Jessica Lautz told Newsweek. Lautz is the deputy chief economist and vice president of research at the National Association of Realtors.
The idea to turn vacant or struggling shopping malls into housing is not new, but it has picked up speed since the pandemic, when the U.S. experienced a surge in online shopping which led to store closures across the country.
An average of 1,170 shopping malls closed across the country every year between 2017 and 2022, according to a report released by Capital One earlier this year. While many Americans still enjoy in-person shopping and foot traffic to malls has improved since the pandemic, many are still having a hard time keeping their doors open.
Last year, 9,260 mall stores closed while 6,880 new ones opened for a net loss of 2,380 outlets. There are currently around 1,200 malls across the country, according to Capital One. By 2028, there might be as few as 900. They were also more likely to be vacant than any other retail space, according to Capital One, reporting an 8.7 percent vacancy rate at the end of last year.
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