Cleveland’s housing conversation has shifted.

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For years, the narrative centered on vacancy and population loss. Today, the discussion is different. Demand for well-located, thoughtfully designed housing is rising. Downtown occupancy is climbing. Construction pipelines are active. Employers are expanding. Remote and hybrid work have changed where people want to live, but they have not reduced the need for quality housing.

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Project Scarlet sits in the middle of that shift.

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As we continue the conversation around Project Scarlet and the adaptive reuse of the historic Rose Building, it is important to zoom out. This project is not simply about converting a building. It reflects a broader question facing Cleveland and secondary cities across the country.

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How much housing do we actually need, and what should that housing look like?

The National Housing Shortage Is Real

The United States is facing a structural housing shortage. According to estimates from Freddie Mac, the country was short approximately 3.8 million housing units in recent years. Zillow research has similarly pointed to a multi-million-unit gap between supply and demand.

While Sun Belt markets absorbed much of the post-pandemic growth, secondary cities have experienced renewed momentum. Markets like Cleveland are benefiting from:

• Lower cost of living compared to coastal metros
• Growing healthcare and education sectors
• Infrastructure investment
• Renewed interest in walkable urban cores

The narrative that “Rust Belt equals decline” no longer reflects on-the-ground reality. Cleveland’s downtown population has grown substantially over the last two decades, and residential occupancy in stabilized assets remains strong.

The issue is no longer excess supply. It is delivering the right supply.

Cleveland’s Housing Need Is Nuanced

Cleveland does not face the same type of explosive population growth as Austin or Phoenix. However, the need is specific and structural.

Key drivers include:

• Healthcare expansion led by institutions like Cleveland Clinic and University Hospitals
• Growth in advanced manufacturing and technology
• Increasing preference for urban living among young professionals
• Downsizing baby boomers seeking maintenance-free living

At the same time, much of Cleveland’s housing stock is aging. A significant portion was built before 1970. Older properties often require major capital investment to meet modern expectations around energy efficiency, safety, layout, and amenities.

This creates a dual challenge:

1. Preserve and modernize existing stock
2. Deliver new or repositioned assets that reflect how people actually live today

Project Scarlet addresses both.

Adaptive Reuse as a Housing Strategy

Adaptive reuse has become one of the most efficient ways to add housing in constrained urban environments. Converting office, industrial, or historic buildings into residential units can:

• Reduce construction timelines
• Lower embodied carbon compared to ground-up development
• Preserve architectural character
• Revitalize underutilized corridors

Nationally, office-to-residential conversions have accelerated as remote work reshapes downtown office demand. According to data from CBRE and other industry sources, thousands of units are currently in conversion pipelines across major U.S. cities.

In Cleveland, adaptive reuse is not new. It has been part of downtown’s residential growth story for years. Project Scarlet continues that legacy by reimagining the Rose Building as a modern residential offering while respecting its architectural history.

This approach accomplishes more than adding units. It activates streets, supports retail, increases tax base, and reinforces downtown as a place to live, not just work.

What the Next Wave of Housing Will Look Like

Housing demand is evolving. The next generation of projects will reflect several key shifts.

1. Flexibility Over Excess

Renters are prioritizing flexible layouts, optionality, and service-driven amenities. Large amenity packages matter less than practical convenience and control.

With Project Scarlet, flexibility is embedded in the design philosophy. Select residents will have opportunities to shape their living space within defined standards. This approach aligns with broader renter preferences for personalization and adaptability.

2. Service as Infrastructure

Concierge services, package management, smart access, and integrated technology are becoming expected. According to the National Multifamily Housing Council, technology adoption and resident experience rank among the top priorities for both developers and renters.

Buildings are increasingly judged on how frictionless daily life feels.

3. Urban, Walkable, Connected

Walkability remains a primary value driver. Access to dining, healthcare, transit, and employment centers continues to support rent premiums and occupancy stability.

Downtown Cleveland’s resurgence has been tied directly to this live-work-play dynamic. Housing projects that reinforce connectivity will continue to outperform isolated suburban product.

4. Financial Discipline

Higher interest rates and tighter capital markets require disciplined underwriting. The next wave of housing will not be speculative. It will be grounded in durable demand, conservative leverage, and operational excellence.

Projects must pencil in a higher-rate environment. That changes design decisions, construction methods, and amenity programming. Efficiency and long-term asset performance matter more than flash.

Why More Housing Still Matters in Cleveland

Some ask whether Cleveland truly needs more units.

The answer depends on where and what.

Downtown and select infill corridors continue to show strong demand for quality product. Vacancy rates in stabilized Class A and well-executed adaptive reuse assets remain competitive. At the same time, workforce housing supply is tight in many submarkets.

Strategic housing development supports:

• Talent attraction and retention
• Employer recruitment
• Local tax revenue
• Small business growth
• Long-term neighborhood stability

Without new supply, upward pressure on rents can intensify. With thoughtful supply, cities can maintain affordability while upgrading quality.

Project Scarlet contributes to that balance by adding modern units within an existing structure, strengthening the urban core without expanding sprawl.

The Broader Vision

Housing is infrastructure.

It is tied to economic development, public safety, transit investment, and job growth. When cities invest in housing that reflects how people live today, they signal confidence in their future.

Project Scarlet represents more than a single building conversion. It reflects a belief that:

• Cleveland’s urban core will continue to grow
• Adaptive reuse can drive efficient expansion
• Residents value flexibility and service
• Long-term asset stewardship matters

The next decade of housing in Cleveland will likely include a mix of ground-up development, strategic conversions, and targeted workforce housing initiatives. The goal is not simply adding units. It is delivering the right units in the right locations with the right operational model.

That is the conversation Project Scarlet helps move forward.

Sources

• Freddie Mac, U.S. Housing Supply Report
• Zillow Research, Housing Supply and Demand Data
• National Multifamily Housing Council, Apartment Industry Outlook
• CBRE Research, Office-to-Residential Conversion Trends
• U.S. Census Bureau, American Community Survey
• City of Cleveland Planning and Development Reports