Imagine stepping out of your front door into a vibrant hub where shopping, dining, and entertainment are just steps away.
This isn’t some far-off vision of the future—it’s a growing trend reshaping communities across the country.
Once-traditional malls are evolving into dynamic mixed-use spaces that blend housing with retail, restaurants, and entertainment. For those in their 20s and early 30s seeking an affordable, lively lifestyle, these innovative spaces offer an enticing proposition.
Verify your home buying eligibility. Start hereThe evolution of the American mall
Once bustling centers of commerce, many American malls have faced decline due to changing retail landscapes and consumer behaviors.
In response, developers are reimagining these spaces, converting them into mixed-use complexes that blend residential units with retail, dining, and entertainment options. This trend addresses both the surplus of underutilized retail space and the growing demand for housing, especially among younger demographics.
According to a study by the Urban Land Institute, approximately 192 malls in the U.S. are adding housing to their footprints, with over 50% of these redevelopment projects incorporating residential units. An analysis by JLL of 153 U.S. mall redevelopments found that 46% are mixed-use projects incorporating at least three uses, with housing being the most popular addition.
Case in point: Paradise Valley Mall in Phoenix, Arizona
A prime example of this transformation is the Paradise Valley Mall in Phoenix. Once a traditional shopping center, it’s undergoing a $2 billion redevelopment to become a vibrant mixed-use community known as PV.
The reimagined PV promises to elevate the community with a high-end dining, entertainment, and retail district interwoven with upscale residential and office complexes. This mixed-use development will also be home to a centrally located park and community gathering space.
The first phase of the redevelopment opened last fall, featuring establishments like Flower Child, Blanco Cocina + Cantina, and Whole Foods Market. Additionally, AVE Paradise Valley, a brand new residential mid-rise, offers contemporary apartments with immediate access to on-site amenities, including retail and dining options.
Why Millennials and Gen Z are embracing this new trend
Millennials and Gen Z are at the forefront of this shift toward mixed-use developments. Several key factors are driving their interest:
- Walkability and Convenience: Younger generations prefer walkable communities where they can access everything they need within a short distance. Living above shops and restaurants eliminates long commutes and offers an ultra-convenient lifestyle.
- Affordability in Competitive Markets: With rising home prices and high mortgage rates, many first-time buyers are looking for cost-effective alternatives. Mixed-use developments often offer competitively priced condos and apartments that make homeownership more attainable.
- Social and Community-Oriented Living: Millennials and Gen Z value experiences over possessions, and these communities foster social engagement. Whether it’s grabbing coffee downstairs, attending a live music event in the plaza, or shopping with friends, these developments promote a vibrant, connected lifestyle.
- Live-Work-Play Balance: Many younger professionals work remotely or in hybrid settings, making proximity to co-working spaces, cafes, and leisure activities highly desirable.
Affordability and lifestyle benefits
Living in such developments can be a more affordable option for first-time homebuyers or renters seeking a vibrant lifestyle.
The integration of residential units with retail and entertainment reduces the need for commuting, potentially lowering transportation costs. Moreover, the convenience of having essential services and leisure activities within walking distance enhances the quality of life.
For example, developers converted the upper floors of The Arcade in Providence, Rhode Island — America’s oldest indoor mall — into 48 micro-apartments. Residents enjoy unparalleled convenience, with amenities like hair salons and eateries just downstairs. One resident noted, “If I want to get my hair cut, I can walk downstairs. If I want to pick up lunch, I don’t even have to leave the building, even if the weather outside is awful.”
Would you live at the mall?
As the landscape of urban living continues to evolve, these mixed-use developments present a unique opportunity to blend convenience, affordability, and an active lifestyle. Imagine having your favorite shops, restaurants, and entertainment venues just an elevator ride away. For many young adults, this model aligns perfectly with the desire for a connected, community-oriented living experience.
If this lifestyle appeals to you, exploring mortgage preapproval could be the first step toward making it a reality. By understanding your purchasing power, you can navigate the options available in these innovative communities and find a home that suits both your budget and lifestyle preferences. Additionally, be sure to look into down payment assistance programs and grants available in your state, which can provide valuable financial support and help make homeownership more accessible.
The transformation of traditional malls into mixed-use developments is redefining urban living, offering a harmonious blend of convenience, community, and modern amenities. So, would you consider living at the mall?
