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The White House announced that private companies involved in real estate development will receive a substantial $45 billion in federal funding to facilitate these conversions. This move is part of a broader effort to combat the rising vacancy rates in commercial real estate, which has been declining since 2020 and has now become a significant concern for the economy.
Cities like Washington D.C., New York, and San Francisco are leading the charge by transforming their downtown areas through the repurposing of commercial properties—including office buildings, hotels, and other commercial spaces—into residential units. The policy aims to make housing more affordable and reduce transportation costs by focusing on properties located near major transportation hubs.