Clever investors want to transform defunct malls into affordable housing. This sounds like a win-win-win at first. It’s helpful, useful, practical – and doesn’t necessarily require federal funding. What a warm and fuzzy idea that can help people and make use of existing structures. Yaaaay!
We need more affordable housing. Nobody will deny that. According to Pew Trusts, the 2018 U.S. housing market was at its least affordable in ten years. Adaptive reuse is a brilliant idea on paper. However, “affordable housing” is not merely a phrase; it holds legal connotations and requirements, both on national and state levels. It’s…complex.
Then my inner skeptic popped up and whispered in my ear, “Careful. What if it’s a trap?” History tells us to be wary of separating people by socioeconomic status (often–though not always–related to race). I started thinking about the long, troubled history of the “projects” in the U.S., which served to effectively segregate low-income families from the post-New Deal era until modern days. This in turn led to less investment in the area, meaning residents had to contend with fewer schools, grocery stores, public transportation routes, and the like.
Perhaps the adaptive reuse of the malls is not so nefarious. After all, these malls are already in residential areas. Therefore, one hopes, decent schools, supermarkets, and public transportation already exist, just as in other areas of a given city. The residents of one mall, one housing development, should not significantly change the housing market and available local resources by much, right? It will be a seamless integration of a whole new group of people into a neighborhood, right? We hope that’s true.
Maybe it won’t be a case of white flight, AKA “There goes the neighborhood” all over again. After all, the ethnic diversity isn’t specified beyond “workforce, student and 55 plus housing,” future residents, as defined by Richard Rubin, CEO of Repvblic, the company leading the charge to invest in old malls and big box stores. It sounds like a positive thing that the new, “recycled” housing developments he’s investing in don’t require federal funding to get built.
Affordable housing is a challenge wherever you look. Investors in multi-million dollar, sexy and modern high rises aren’t traditionally going after the affordable housing market, because what’s in it for them? In Austin, where The American Genius is based, developers already balk at the idea of including the mandated affordable housing units required for new construction. Some developers have even paid the city millions of dollars to get around the requirement.
Adaptive reuse by recycling dead malls into affordable housing feels like a creative, beneficial idea. Yet, I encourage us to delve a bit deeper and ask the hard questions. I mean, there must be a reason there are more movies about hookers with hearts of gold than real estate investors with hearts of gold. This calls for cautious optimism, but also reading between the lines and paying close attention to the details as this type of housing develops.