A Shift in the Retail Landscape
Across the country, traditional shopping malls are undergoing a significant transition. Once busy social and commercial hubs, many now stand largely empty. The rise of online shopping, evolving consumer behavior, and broader economic changes have sharply reduced the foot traffic that malls relied on. As major retailers close their doors, vast buildings and acres of parking become liabilities rather than assets, leaving landlords with underused properties and therefore plummeting property values. This, in turn, reduces the tax liability for sites and creates a tax shortage in these municipalities. If alternative use is not considered, the strain of that lost tax base might be felt most strongly by the residential owners in the municipality either in property taxes or reduction in municipal services.
A New Use for Aging Commercial Space
In response, local governments and developers are exploring a new approach: turning dormant mall properties into housing. This strategy does more than repurpose unused real estate—it addresses growing housing shortages, stimulates local economies, maintains the tax base and repositions outdated commercial centers as relevant parts of modern communities.
Rather than continuing to invest in properties that no longer attract shoppers, communities are rethinking these spaces as opportunities for integrated residential development. The shift is pragmatic. It converts stagnation into growth, while bringing new life to areas that have long struggled with decline.
Creating Economic Activity and Value
The benefits of redevelopment extend beyond filling empty space. When housing is added to mall properties, the surrounding area often experiences a rise in property values, an uptick in business activity, and a broader base for municipal tax revenues. These benefits occur without increasing tax rates for existing residents, making the move both financially and socially sustainable.
Mixed-use projects that blend residential units with retail and public space support ongoing economic participation. They provide housing close to daily needs, reduce commuting pressures, and allow businesses to remain viable with a built-in customer base.
Examples of Mall Redevelopment Locally and Nationally
Long Island: Sunrise Mall and South Shore Mall
Two Long Island malls—Sunrise and South Shore—illustrate both the challenge and potential of mall redevelopment. As foot traffic continues to drop, local leaders and developers have discussed turning these sites into mixed-use neighborhoods. These proposals aim to reduce suburban sprawl, increase walkability, and offer housing options near transit and essential services.
The Arcade, Providence, Rhode Island
The Arcade, known as the oldest indoor mall in the country, was successfully transformed into micro-apartments. The building’s original architecture was preserved, allowing for a project that is both historically sensitive and future-oriented. The apartments meet the needs of residents seeking smaller, more affordable urban housing.
Paradise Valley Mall, Phoenix, Arizona
This Arizona mall was redesigned as a vibrant neighborhood that includes housing, dining, green spaces, and retail. The master-planned development demonstrates how a commercial property can evolve into a multi-functional urban district that serves long-term needs rather than short-term commercial trends.
La Placita Cinco, Santa Ana, California
In Santa Ana, a small retail center was converted into affordable housing. The project used existing utilities and structures where possible, lowering construction costs. The outcome was a residential space for families who might otherwise struggle to find stable housing in the area.
Community-Centered Benefits
Mall-to-housing conversions offer more than shelter. They contribute to the broader goals of sustainable urban design and economic resilience.
- Economic Activation: Residents increase demand for local services, keeping businesses open and fostering job creation.
- Smarter Land Use: Redevelopment limits sprawl by reusing developed land instead of clearing new space for housing.
- Connectivity: Mixed-use layouts encourage walking, reduce reliance on cars, and support public transit.
- Neighborhood Safety: Populated areas with lighting, visibility, and activity tend to have fewer safety concerns.
These projects also provide opportunities to include green infrastructure, such as parks or bike paths, contributing to the overall quality of life.
Navigating the Hurdles
While promising, converting malls into housing involves complex considerations. Zoning laws often prohibit residential development on commercial land, requiring updates or variances. Financing can be complicated, especially when projects aim to include affordable housing. Community input and buy-in are also essential; some residents may oppose changes due to concerns about traffic or density.
To succeed, redevelopment efforts need careful planning and strong partnerships between local government, developers, and residents. Early communication, transparent design goals, and responsiveness to public feedback are key elements of productive redevelopment.
A Redefined Suburban Future
The story of the American mall is no longer just one of decline. It’s becoming a story about adaptation. The reuse of these properties invites a broader conversation about what suburban and urban spaces should be in the coming decades.
Instead of empty parking lots and unused retail corridors, towns can feature residential blocks with retail below, transit access nearby, and public gathering areas where malls once stood. These projects help shift planning from car-centric models toward places designed around daily human interaction.
Communities that embrace this transformation are preparing for economic shifts, demographic changes, and environmental challenges. By doing so, they’re building places that are not only functional but also more responsive to the needs of current and future residents.
Looking Forward
Building housing where shopping malls once thrived isn’t just a matter of saving a structure—it’s about reclaiming land for purposes that better serve communities now. With thoughtful planning and inclusive development, this approach holds real promise for neighborhoods across the country.
As more cities and towns explore these conversions, the conversation around land use and housing will continue to evolve. Success depends on leadership that is willing to think beyond legacy systems and on public engagement that reflects the diverse needs of each community.
The transformation of Long Island’s aging malls into modern, multipurpose destinations represents both a challenge and an opportunity for regional revitalization. As local leaders and developers consider the future of these sprawling spaces, strategic vision and community input will be essential. To explore the implications of these redevelopment efforts and what they could mean for the South Shore and beyond, read the full Newsday editorial here.
FAQ
Why are malls being converted into housing?
Many malls face decline due to online shopping and changing consumer habits. Redeveloping them into housing addresses local shortages and revitalizes the area and protects the tax base.
What are the benefits of mall-to-housing redevelopment?
Benefits include increased property values, local economic growth, smarter land use, walkable communities, and better use of existing infrastructure.
Are there any successful examples of these projects?
Yes. Projects like The Arcade in Rhode Island, Paradise Valley Mall in Arizona, and proposals in Long Island show how redevelopment can meet housing and community needs.
What challenges do these redevelopment projects face?
Zoning restrictions, financing for mixed-income housing, and community concerns about density or traffic are common hurdles that require careful planning and engagement.
How do these projects support sustainability?
They reduce vacant, blighted areas by reusing developed land, encourage public transit use, and often include green infrastructure like parks and bike paths.