“In the case of a complete transformation of commercial real estate like a shopping mall, you’re going to need outside financing partners and you’re going to require additional zoning changes.
“In some cases, you might need new infrastructure, but those are all part of the development process. At the end of the day, if you build those homes they are going to generate property taxes, which will then provide a fiscal surplus for the community, so it’s both private enterprise and local governments working together,” he said.
A study by transportation data company INRIX found that mall visitor numbers in the US may have started to recover after plummeting by 91% during the height of the pandemic.
A recent report by Deloitte however concluded that the traditional concept of the mall “will change forever” and may have a future function as a residential location.
Dr Dietz also dismissed suggestions that either ADUs (accessory dwelling units) and mobile or modular homes could significantly reduce the housing inventory shortage. He said: “ADUs are a way of adding a rental unit, but they tend to be small, and really what we’re short on is entry level, single-family homes.