Closed College Campuses Proposed for New Residential Housing

As colleges shutter, advocates look to convert vacant campuses into new housing units for supply-strapped communities.

Updated on Oct. 4, 2026 in Residential

Isometric editorial illustration showing a campus building transitioning into residential townhouses, representing the repurposing of vacant land for housing. — Experts are proposing the conversion of shuttered college campuses into residential housing to help bridge the national deficit of 3.7 million homes. AI Illustration. Upload story photo >

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Should your community convert vacant college campuses into residential housing to address housing shortages?

As of 2026, experts are looking to repurpose closed college campuses into residential housing to address a national shortage of 3.7 million homes. This shift follows a wave of institutional closures that have left large properties vacant across the United States.

Why it matters

Repurposing these large land parcels could mitigate the national housing supply deficit while preventing the decay of abandoned campus sites. However, progress is often slowed by significant financial liabilities, complex zoning requirements, and debt burdens left by former institutions.

Consultants project 442 private nonprofit colleges face closure risk, while developers work to convert sites like the former Holy Names University into 165 new homes. These efforts aim to narrow regional gaps, such as the 4,400-unit shortfall currently faced in Quincy, Massachusetts.

The players

Huron Consulting Group

An advisory firm that provides strategic guidance to higher education institutions and projects future enrollment and insolvency risks.

Eastern Nazarene College

A private college that closed in 2025 with $18 million in liabilities.

Holy Names University

A former institution in Oakland, California, where developers have planned 165 new residential homes on the site.

The details

Developers and municipalities often attempt to convert former dormitory and academic buildings into residential apartments to bypass new construction costs. These projects require intensive feasibility studies and zoning changes to address debt-related hurdles, such as the $38 million in liabilities left by Limestone University. Without successful repurposing, properties often remain vacant for over a decade, with some sites even succumbing to fire damage.

2010: Dana College closed.
2012: Virginia Intermont College became vacant.
2023: Cazenovia College and Holy Names University closed.
2024: Four buildings at Virginia Intermont College burned down.
2025: Eastern Nazarene College and Limestone University closed.

Money Landscape

The push to repurpose campus land follows a decade-long trend of college closures, marking a departure from traditional institutional land use. This trend is now intersecting with the broader national housing shortage, which requires 3.7 million additional homes to meet current demand.

Homebuyers and renters may see new inventory if municipalities successfully rezone vacant college properties in their areas. Prospective residents should monitor local planning board agendas to track whether major campus sites in their neighborhood are slated for residential development.

The takeaway

Large-scale campus conversions can provide relief in housing-constrained markets, though the process is often lengthy due to existing institutional debt. Residents interested in local supply should review city zoning meeting minutes to identify if defunct local institutions are being considered for residential redevelopment.