Top Markets in 2026 to Convert Hotels to Apartments

Top 2026 hotel conversion markets

Targeting high migration areas

Following job growth trends

Focus on conservative, business-friendly hubs

Repurposing distressed hotels to housing

Profiting from supply-demand gaps

High In-Migration: Areas attracting a significant influx of new residents.

Robust Job Growth: Regions with dynamic and expanding employment bases.

Business-Friendly "Conservative" Values: Markets known for pro-business policies, lower taxes, and lifestyles that are drawing people from higher-cost coastal cities.

The Magnet: The DFW metroplex is a perennial leader in net migration, drawing thousands of new residents annually. It is a corporate powerhouse, home to numerous Fortune 500 headquarters.

The Opportunity: While Dallas is forecast to lead in new hotel openings, this new supply will put immense pressure on older, less competitive properties. These aging hotels in prime suburban locations are ideal candidates for conversion into workforce housing to support the region's booming job market.

The Vibe: A quintessentially business-friendly environment with no state income tax, attracting both companies and workers seeking affordability and opportunity.

The Magnet: The "Valley of the Sun" continues its explosive growth. Cities like Gilbert, Chandler, Mesa, and a newcomer, Queen Creek, are seeing a staggering share of their new residents coming from out of state. The region is rapidly becoming a hub for tech, industrial enterprise, and healthcare.

The Opportunity: Recent Bureau of Labor Statistics data shows significant absolute job gains in the Phoenix metro area. This rapid population and employment growth is creating a severe housing shortage, making immediate-occupancy solutions like converted hotels highly valuable.

The Vibe: Historically a conservative stronghold, the region's low-tax, pro-growth policies continue to attract a diverse workforce, creating a massive need for varied housing options.

The Magnet: "Music City" is singing a tune of prosperity, ranking as one of the top cities for job opportunities in the US. A booming tech and healthcare sector is complementing its world-famous entertainment industry.

The Opportunity: Tennessee is a top destination for inbound migration. While Nashville's tourism sector is strong, the demand for housing from its expanding workforce is even stronger. Converting older hospitality assets into apartments can provide much-needed inventory for young professionals and service workers.

The Vibe: Located in a solid red state with a very favorable tax climate for individuals and businesses, Nashville offers a high quality of life that is proving irresistible to movers.

The Magnet: As one of the nation's premier financial hubs, Charlotte is experiencing remarkable growth. Recent data indicates it has one of the highest percentage increases in employment among large US metros.

The Opportunity: The city's strong population growth is outpacing housing deliveries. This imbalance creates a compelling case for adaptive reuse projects that can bring new residential units to market quickly and cost-effectively.

The Vibe: North Carolina's business-friendly environment and Charlotte's relative affordability compared to Northeast financial centers make it a prime destination for corporate relocations and talent migration.

The Magnet: Florida is a top state for inbound movers, and the Tampa Bay area is capturing a significant share of that growth. A burgeoning tech scene and a robust service economy are driving steady job gains.

The Opportunity: The region's strong tourism industry means a large inventory of hotels. As traveler preferences shift towards newer properties, older hotels—particularly those not on the beach—can be repurposed into vital workforce housing. State-level incentives for such conversions could further sweeten the deal.

The Vibe: Florida's increasingly conservative political landscape translates into policies heavily focused on economic growth and attracting businesses, creating a favorable tailwind for real estate investment.