How Work-From-Home Trends Are Changing Office-to-Residential Conversions in Texas

Since 2020, the work-from-home movement has completely changed how we live and work.

And in Texas, where both cities and suburbs are expanding fast, this shift is leading to something unexpected: more empty office buildings and a rise in residential conversions. That’s right—some unused office towers and commercial spaces are being turned into homes.

This new development is part of a larger trend in hybrid work real estate, and it’s reshaping the way people invest, buy, and sell properties in Texas.

 
The Rise of Hybrid Work in Texas

With many companies now embracing hybrid work setups, employees are no longer tied to desks five days a week. According to a 2024 Gallup report, around 53% of full-time workers in the U.S. now follow a hybrid schedule, and that number is even higher in tech-friendly cities like Austin and Dallas.

As a result, demand for large office spaces has dropped. In some Texas cities, office vacancy rates have reached 25% or more, leaving developers and property owners with a big question: What now?

 
Office Buildings Are Becoming Homes

The answer for many: convert offices into apartments or condos.

Old office buildings—especially those in downtown areas—are getting a second life. Developers are adding kitchens, dividing floors into individual units, and creating new urban housing in places that were once all business.

Why is this happening?

• Reduced demand for office space
• High demand for housing, especially affordable options
• Sustainability goals (reuse instead of building new)
• Local tax incentives for revitalizing downtown areas
  

In cities like Houston and San Antonio, these conversions are turning forgotten business zones into livable neighborhoods—bringing more people back into city centers.

 
Real Estate Impact: More Housing, New Opportunities

For buyers, office-to-residential conversions open the door to unique, often lower-priced housing in central locations. For investors, these properties can offer great returns in high-demand areas with limited residential space.

 
How It Affects Home Sellers

If you’re looking to sell your house fast in Houston or any major Texas city, this trend could influence buyer behavior. Some homebuyers are now comparing your listing with downtown apartments that used to be office suites. These new spaces offer walkability, modern features, and a city-living vibe.

That doesn’t mean your home won’t sell—it just means you need to be smart about how you position it. Highlighting a home office space, fast internet setup, or quiet working area could make your property more appealing to hybrid workers.

You can learn more about how to stand out here:

How to Highlight Your Home’s Location for Selling
Top Strategies for Selling Your Texas Home Fast Without Repairs
 

Cities Leading the Conversion Wave

Several Texas cities are already making big moves:

• Austin is encouraging downtown conversions to address its housing shortage.
  
• Dallas developers are transforming old high-rises into sleek apartment buildings.
  
• Houston is launching incentive programs for developers to turn vacant offices into homes.

According to CoStar, over 2.5 million square feet of office space in Texas is currently being reviewed or repurposed for residential use.

 
Final Thoughts

The hybrid work era is doing more than changing work schedules—it’s changing the face of Texas real estate. As cities adapt to fewer commuters and more remote workers, office buildings are being turned into homes, bringing fresh life to empty spaces.

For homeowners and investors alike, the rise of hybrid work real estate opens up new challenges—and exciting new opportunities. Whether you're buying, selling, or just watching the market evolve, it’s a trend worth paying attention to.