Joe Biden wants more people to start living in empty offices

• The Biden Administration has launched a new program aimed at tackling the US housing crisis.
• Developers can access billions in federal funds to help convert empty offices into apartments.

The pandemic has left plenty of offices empty as people continue to work from home. Meanwhile, there aren't enough homes to meet demand in many places.

Joe Biden's administration has come up with a plan it thinks can help address the housing crisis: encouraging developers to turn unwanted office buildings into apartments.

Converting offices to residential properties can be challenging due to the expense of refitting, as well as complying with zoning laws and other regulations.

But the White House initiative will make more than $35 billion available from existing federal programs in the form of grants and low-interest loans to encourage developers to convert offices into residential.

The Biden administration is also offering technical guidance to make the process easier.

Resources made available through the Department of Transportation will also fund housing developments near transit hubs.

Following the rise of home working when the pandemic struck and the reluctance of many employees to start commuting again five days a week, business districts have been struggling.

Office vacancies stand at a 30-year high of 18.2%, according to research by CBRE.

New York's famous Flatiron Building will soon be converted from empty offices into luxury residences, while 160 Water Street, a 1970s office tower in lower Manhattan, is being turned into almost 600 apartments.

Last December Silverstein Properties, one of America's largest commercial landlords, announced plans to raise more than $1.5 billion to convert unwanted office space into residential housing in markets ranging from New York to San Francisco.

Meanwhile, home buyers are battling a triple whammy of higher prices, higher borrowing costs and a shortage of properties coming to market.

In January 2020 the median home price was $266,300, according to the National Association of Realtors. It's now $406,700 as of July – a 52% increase.

The White House hopes the initiative will alleviate both these problems, creating more housing and revitalizing the commercial real estate sector.

"This presents an area of opportunity to both increase housing supply while revitalizing main streets. It's a win-win," Lael Brainard, director of the National Economic Council, told ABC News.

Conversions are faster than new construction, 20% cheaper, and produce fewer greenhouse gas emissions, the White House added.