The US housing market faces an inventory shortage, but empty offices don't offer a solution.
Goldman Sachs strategists say that offices can't be cheaply or easily converted into residential units.
Goldman Sachs Investment Research, CoStar dataIn the same stretch, a combination of high mortgage rates and home prices with limited housing inventory has frozen the US housing market.
Residential housing affordability has declined for the last 15 years and hit a historical low in 2022.
"Our analysis implies that only 0.8% of US office inventory is currently priced at a level that makes conversion to multifamily housing financially feasible," the bank maintained.
Persons:
Goldman Sachs, —, it's, Goldman, Jan Hatzius
Organizations:
Service, Goldman Sachs Investment Research, Goldman, San
Locations:
San Francisco, Los Angeles, Seattle