Thursday, September 10, 2026

School Districts Favor Demolition Over Renovation as Enrollment Declines

Buildings older than 50 years are increasingly razed rather than modernized, with districts converting surplus space into community centers and workforce housing.

By the Family Office Real Estate Daily Desk·Thursday, September 10, 2026·2 min read
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The answer · checked against Bisnow

Are school districts demolishing or renovating aging school buildings, and what are they doing with surplus school properties?

School districts in California are increasingly choosing demolition over renovation for buildings older than 50 years, driven by declining urban enrollment and unfavorable per-square-foot modernization costs. Sacramento City Unified School District, for example, has capacity for 57,000 students but enrolls only 36,000. Surplus school sites are being converted to community centers and workforce housing, including 122 teacher housing units by Jefferson Unified School District and 130 units planned by Calistoga Joint Unified School District.

Key facts
  • Eric Holm, director of facilities construction for Palo Alto Unified School District, said during an Aug. 5 panel at Bisnow's inaugural Northern California K-12 real estate summit that districts are 'leaning more towards tearing down and starting over when it's a 50-plus-year-old building.'
  • Sacramento City Unified School District has capacity for approximately 57,000 students but carries an enrollment of just 36,000, according to Matt Juchniewicz, the district's director of facilities design and construction.
  • Redwood City School District engaged DLR Group of San Francisco to design family centers at eight schools, transforming unused space into community hubs funded by Measure S, a bond passed in 2022.
  • Jefferson Unified School District created 122 new units of teacher housing in Serramonte in 2022, and Pacifica School District has 70 units underway after razing the shuttered Oddstad Elementary School.
  • Calistoga Joint Unified School District is creating 130 units of subsidized teacher housing in Calistoga in Napa County, according to Lev Weisbach, Rivercrest Partners senior vice president and managing partner for the San Francisco Bay Area.
  • Salinas City Elementary School District is creating community centers at nine of its schools, with the decision driven in part by the cost of converting multipurpose rooms into kitchen areas versus building a new central kitchen facility, according to Amna Javed, director of bond projects for the district.
School Districts Favor Demolition Over Renovation as Enrollment Declines
Image: editorial illustration · Story sourced from Bisnow

School districts across Northern California are increasingly choosing to demolish aging facilities rather than renovate them, driven by declining enrollment and the high cost of modernizing buildings that are more than 50 years old. The decision marks a shift in how districts approach infrastructure investment as demographic patterns change.

Palo Alto Unified School District recently completed a renovation where a building was stripped to its core, with temporary shoring installed to hold up the roof and structural steel columns wrapped in high-strength carbon fabric. Only the roof remained from the original structure. The district now leans toward demolition for buildings over 50 years old, said Eric Holm, director of facilities construction.

Sacramento City Unified School District has capacity for 57,000 students but enrolls just 36,000, said Matt Juchniewicz, director of facilities design and construction. The district is questioning whether modernization makes financial sense when enrollment may fall further. Older and lesser-used buildings may be scrapped in favor of new middle or high schools that could draw students from larger areas, he said.

Building age is the primary factor in demolition decisions. Outdated low-slung masonry buildings are prime candidates for razing, while structures with defining characteristics may be worth preserving, said Nathan Herrero, principal and vice president at SVA Architects' Pleasanton office. His firm preserved a building constructed with laminated timber and surrounded by old-growth trees, but recommended demolition for generic masonry structures.

Districts are repurposing underused space into community facilities. Redwood City School District engaged DLR Group of San Francisco to design family centers at eight schools that transformed unused space into community hubs. The centers provide food and clothing assistance, educational workshops, and immigration guidance, funded by Measure S, a school improvement bond passed in 2022.

Salinas City Elementary School District is creating community centers at nine of its schools. The decision came after weighing the cost of transforming little-used multipurpose rooms into kitchen areas versus building a new central kitchen facility, said Amna Javed, director of bond projects. Modern school design increasingly includes creating student union areas or opening facilities to the broader community throughout the day.

Some Bay Area districts with surplus real estate from campus closures have shifted use from education to workforce housing. The move reflects a broader rethinking of what schools can be as enrollment patterns shift from dense urban cores to suburban areas.

The Deployment Angle

Family Office Real Estate Daily Desk · our analysis, not the source's

Family offices with education or community-development mandates should track bond measures that fund school modernization and community-center conversions. Measure S in Redwood City authorized transformation of unused school space into family-service hubs, a model that may replicate in other districts facing enrollment declines. Co-development structures with districts or nonprofit operators could provide below-market basis and mission alignment.

The enrollment arithmetic matters for sizing exposure. Sacramento City Unified operates at 63% capacity, with room for 57,000 students but enrollment of 36,000. Districts in this position will consolidate campuses and dispose of surplus real estate. Family offices should underwrite for accelerated obsolescence in urban school districts and potential land sales or ground-lease opportunities on closed campuses.

Workforce-housing conversions of surplus school sites merit direct-ownership structures rather than LP capital. Sites carry entitlement risk but often sit in transit-served locations with existing infrastructure. Price in long disposition timelines and community opposition, but basis should be below replacement cost. Avoid districts where enrollment is stable or growing, as those sites will remain in educational use.

Questions this story answers

01Why are school districts choosing to demolish rather than renovate older school buildings?

Palo Alto Unified School District's Eric Holm said districts have repeatedly learned to favor demolition over renovation for buildings older than 50 years. Sacramento City Unified's Matt Juchniewicz noted that modernization does not pencil out on a per-square-foot basis when enrollment is already at 36,000 against a capacity of 57,000 and is expected to fall further.

02What are California school districts doing with surplus school properties?

Some Bay Area districts are converting surplus real estate to workforce housing. Jefferson Unified School District created 122 teacher housing units in Serramonte in 2022. Pacifica School District has 70 units underway after razing Oddstad Elementary School. Calistoga Joint Unified School District is creating 130 units of subsidized teacher housing in Napa County.

03What types of school buildings are considered best candidates for demolition versus preservation?

Nathan Herrero, principal and vice president at SVA Architects, said outdated low-slung masonry buildings are prime candidates for razing. Buildings with defining characteristics, such as a project his team encountered built with laminated timber surrounded by old-growth trees, may be worth preserving. Herrero said if a building is marginal and requires complete change of use, replacement is preferable.

04How are school districts repurposing unused space for community use?

Redwood City School District worked with DLR Group to design family centers at eight schools, providing food, clothing, educational workshops, and immigration guidance, funded by Measure S passed in 2022. Salinas City Elementary School District is creating community centers at nine of its schools, according to Amna Javed, director of bond projects for the district.

05What is driving the teacher housing conversions at closed school sites?

Lev Weisbach, Rivercrest Partners senior vice president and managing partner for the San Francisco Bay Area, said teachers are commuting long distances or leaving, creating recruitment and retention costs for districts. Weisbach said converting surplus land into teacher housing represents a 'win-win' that turns a negative into a positive for districts.

Original reporting
Bisnow
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education-real-estateschool-districtsworkforce-housingcommunity-developmentnorthern-california
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