Q COSTA RICA — A few weeks back, part of a building’s facade on Avenida Central came crashing down, thrusting Costa Rica’s San José back into the spotlight.
A few facts suffice make it clear why the city feels so empty.
In the past fifty years, the capital has seen its population cut in half. Back in 1963, the four central districts of San José was home to nearly 100,000 people. Now, the latest census shows only about 54,000.
The real estate market shows a clear gap, too. The Costa Rican Institute of Technology (TEC) estimates that 17% of properties in the city center are completely vacant, while another 18% are only partially occupied. Put together, that means over a third—36%—of buildings aren’t being fully used.
“In our study area, which was approximately 1,260 properties in the historic center, about half of the historic center… in that area alone, we have a 35% underutilization rate and a 17% total vacancy rate,” explained TEC researcher Tomás Martínez.
“That’s a very high figure for any city in the world. Any city in the world that exceeds 10% vacancy in its building stock has something to worry about,” he explains.
These unoccupied structures, ranging from commercial spaces to residential properties, reflect a mix of economic and urban challenges.
Many of these unbuildings remain unused due to factors such as high rental costs, outdated infrastructure, or shifts in business activity, especially in the wake of economic slowdowns or changing market demands.
The presence of empty buildings creates a visible impact on the capital city’s landscape and economy. They can contribute to urban decay, reduce foot traffic in affected areas, and discourage new investments.
At the same time, they represent missed opportunities for housing, retail, or community use in a city grappling with growth and development pressures.
One floor yes, the others no
The review of the underutilization of buildings in the capital puts particular emphasis on how only one floor is the visible face of the rest of the buildings.
“We’re talking, more or less, about the phenomenon that is quite common in San José, which is that the first floor is commercially used, while the upper floors are unoccupied and have very low occupancy rates, less than 30%,” added Martínez.
The observation covers both commercial and residential uses of the buildings.
Local authorities and stakeholders have been exploring strategies to address this issue.
These include incentives to renovate and repurpose vacant properties, promoting affordable rental options, and encouraging mixed-use development to breathe new life into idle spaces.
The goal is to transform these empty buildings into productive assets that support San José’s social and economic vitality while improving urban aesthetics and safety.
Overall, the challenge of empty buildings in San José underscores the need for coordinated urban planning and economic policies that balance development with sustainability and inclusivity.
Turning these spaces from liabilities into opportunities could play a key role in the city’s future growth and community well-being.
San José has all the essentials to accommodate residents
When it comes to the tough unemployment situation, experts highlight something often overlooked: San José already has plenty going for it that’s just not being used.
A factor that is not always noticed is the advantages that San José already has and that are not being taken advantage of.
“It’s the place with the most urban resources—underground electricity, sewage systems, fiber optic internet, amenities, services, transportation, parks. Everything’s here, but not enough people are living here,” summed up the TEC expert.
Municipality Commits to Building “Recycling”
The city of San José sees its buildings as key players in the community’s comeback. The local government explains that improving boulevards, parks, and public spaces is just part of the plan.
But they’re also pushing the idea of “building recycling.”
This means refreshing incentives for real estate developers to bring more affordable housing to the heart of the city, focusing on the four central districts.Part of this effort involves figuring out what rules are holding back unused buildings from being converted into homes—and fixing those roadblocks.
This line includes a plan to identify regulatory obstacles that prevent unused buildings from being put to residential use.
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