Panelist Introductions and Backgrounds

Each speaker shared their journey into housing:

• Amy started as a land-use planner in Vermont, focusing on housing policy. She transitioned into real estate development to implement practical solutions for housing insecurity and affordability.

• Alex came from a construction background, working on stadiums, solar farms, and commercial properties. Frustrated by inefficiencies in construction, he now develops AI-driven tools to optimize construction processes at the worker level.

• Dan specializes in commercial real estate and workforce optimization. He previously worked on NYC housing policy under the de Blasio administration and believes office-to-residential conversions could help address housing shortages.

• Will began his career in venture capital and was inspired by the housing crisis in Silicon Valley. He later worked in real estate private equity to understand how capital drives housing development and is now launching his own company focused on community-first housing solutions.

Key Themes and Discussions

1. Understanding the "Missing Middle" in Housing Development

• Amy introduced the concept of missing middle housing, which refers to housing types that fall between single-family homes and large apartment buildings, such as duplexes, triplexes, and townhouses.

• These housing types are:

  • Historically common in walkable neighborhoods

  • Affordable and adaptable for various life stages

  • Essential for sustainable urban development

• Why is it missing?

  • Zoning laws and building codes have made this type of housing essentially illegal.

  • Developers face financing challenges since banks prefer single-family homes or large apartment complexes.

  • Local regulations discourage small-scale developments, making it easier to build one large unit rather than multiple smaller ones.

2. Commercial-to-Residential Conversion

The discussion highlighted the challenges and opportunities associated with converting underutilized office buildings into residential spaces. As office demand has declined post-pandemic, vacancy rates have doubled in major metro areas, with some buildings seeing occupancy levels at just 50-60% of pre-pandemic levels. Despite efforts to encourage employees to return to the office, many firms are simultaneously downsizing their real estate footprints, revealing an oversupply of commercial space.

The potential for office-to-residential conversion presents an opportunity to address the housing shortage. However, several structural and regulatory challenges persist. Many office buildings, particularly those constructed post-1970s, have large, deep floor plates with limited natural light and restricted plumbing configurations, making residential conversion complex and expensive. Pre-war buildings with smaller footprints and windows that open are more viable candidates. Moreover, stringent zoning and building codes often prevent seamless conversions. If regulations could be adapted to facilitate these transformations, large urban centers could repurpose a portion of their existing commercial real estate to meet housing demand, fostering mixed-use, more dynamic neighborhoods.

3. Retail Revitalization

The panel also addressed the broader issue of commercial real estate adaptation, particularly the shift towards open-air and experience-driven retail environments. Traditional commercial malls have faced growing challenges due to changing consumer habits and e-commerce competition. However, the conversation underscored the potential for revitalization by integrating retail with other uses—such as housing, office spaces, and medical facilities—to create high-traffic, community-centric spaces.

Mixed-use developments that incorporate retail with residential and community spaces are seen as a viable solution to reinvigorate struggling malls and commercial centers. The concept aligns with evolving consumer expectations, where convenience and accessibility play a crucial role. Walkable neighborhoods with a blend of retail, dining, entertainment, and residential components provide economic resilience and ensure continued relevance for commercial properties.

4. Mixed-Use Integration

A recurring theme in the discussion was the push for integrating residential, commercial, and institutional uses to optimize urban space and create sustainable, thriving communities. The panelists examined how the combination of housing, offices, and services could drive more efficient land use while addressing housing shortages and commercial real estate inefficiencies.

For instance, modular construction and AI-driven site selection tools were presented as innovations that could streamline development, reduce costs, and accelerate project timelines. These advancements could help in the repurposing of existing commercial structures, allowing developers to create adaptable spaces that cater to both residential and business needs.

Furthermore, discussions on zoning and regulatory reform emphasized the need for policy shifts that would facilitate mixed-use development. Current zoning restrictions often prohibit the type of small-to-mid-scale housing (such as duplexes, townhouses, and low-rise multifamily units) that could blend seamlessly into existing commercial districts. Revisiting these policies could unlock new development opportunities, ensuring that urban spaces evolve to meet contemporary needs efficiently.

5. The Role of AI and Modular Construction in Housing

• Alex explained that construction inefficiencies remain a major challenge, with outdated methods leading to high costs and slow delivery.

• AI can aggregate and synthesize data, making construction planning more efficient and cost-effective.

• Modular construction, despite past failures (e.g., Katerra), is regaining momentum:

  • Prefabricated buildings reduce material waste by 15%.

  • Standardized, factory-built housing units can lower costs and speed up development.

  • However, financing and industry resistance remain major hurdles.

6. Converting Office Buildings to Residential Use

• Dan highlighted that office spaces remain underutilized post-pandemic, with vacancy rates doubling in major cities.

• Office-to-residential conversions present a major opportunity, but only about 1 in 3 office buildings are viable due to:

  • Large floor plates that lack natural light and plumbing limitations.

  • Zoning and regulatory barriers preventing residential adaptation.

• He suggested that local governments should incentivize conversions by relaxing zoning laws and offering tax benefits.

7. Overcoming Barriers to Innovation in Housing Development

• Will discussed how traditional developers and financiers are often risk-averse, which slows down innovation.

• Real estate professionals are interested in AI and modular construction but hesitate to be early adopters due to concerns about costs, project delays, and investor confidence.

• The solution? Gradual adoption and practical integration of technology into existing workflows:

  • AI should complement—not replace—human decision-making.

  • Digital tools should mirror existing construction workflows rather than reinvent them.

  • Early success stories are critical to convincing industry leaders to adopt new technologies.

8. Addressing Equity in Housing Innovation

A question from the audience raised concerns about equity in housing technology:

• How do we ensure AI and modular housing serve low-income communities rather than exploit them?

• Will pointed to models like:

  • Community Investment Trusts, which allow residents to own shares in local developments.

  • Philanthropy-backed projects that prioritize long-term community benefits.

• The key challenge is ensuring low-income communities are not used as test grounds for unproven technologies.

9. Closing Thoughts and Future Directions

• The panelists emphasized the importance of collaboration between policymakers, developers, technologists, and investors.

• There is no single solution to the housing crisis, but emerging innovations in policy, AI, modular construction, and investment can work together to create scalable, affordable housing.

• Government intervention and zoning reforms will be crucial in unlocking missing middle housing and office conversions.

• The real estate industry must shift its mindset toward embracing technological change to accelerate housing solutions.

Final Takeaways

1. Zoning reform is essential to reintroducing missing middle housing.

2. AI and modular construction can lower costs and improve efficiency, but adoption remains slow.

3. Office-to-residential conversions could help address the housing crisis, but structural and regulatory barriers exist.

4. Risk-averse investors slow innovation, but demonstrating successful pilots can encourage adoption.

5. Equity must be prioritized when implementing new housing technologies to avoid further marginalizing vulnerable communities.

The discussion underscored the complexity of the housing crisis and the need for multifaceted solutions. The speakers provided insights on how policy, technology, and investment can drive positive change, ensuring that housing remains affordable, sustainable, and accessible for future generations.

Disclaimer: This summary is AI-generated based on a recording of the event. While it strives to accurately capture the key points and discussions, there may be minor inaccuracies or omissions. Please refer to official event transcripts or recordings for precise details.