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Affordable Housing Analysis in Zip Code 55055: Newport, Minnesota's LIHTC Developments
CATEGORY
Affordable Housing
DATA
LIHTC Projects
Median Income
Racial Distributions
Population
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Affordable Housing
LIHTC Projects
Median Income
Racial Distributions
Population
Newport, Minnesota, zip code 55055, contains 120 Low-Income Housing Tax Credit (LIHTC) funded affordable housing units. These units, all designated as low-income, represent approximately 7.76% of the estimated 1,547 housing units in the zip code, based on the 2022 population and national average household size.
The LIHTC projects in zip code 55055 have received $1,099,334 in project tax credits, averaging $9,161 per unit. This funding represents 0.38% of Minnesota's total LIHTC allocation, indicating a relatively small but significant investment in affordable housing for this area. Affordable housing has been present in this zip code since at least 2006, with the completion of Red Rock Manor. The most recent project, Red Rock Square Apartments, was completed in 2017, demonstrating over a decade of LIHTC investment in the community.
The LIHTC inventory in zip code 55055 consists primarily of one-bedroom units (76), followed by two-bedroom (26) and three-bedroom (18) units. This distribution suggests a focus on housing for smaller households and families.
Over the past decade, zip code 55055 has experienced significant population growth, increasing from 3,469 in 2019 to 4,038 in 2022. During this period, median income fluctuated, peaking at $71,163 in 2017 before declining to $62,219 in 2022. This trend might indicate an increasing need for affordable housing options.
The racial composition of zip code 55055 has also shifted. The white population decreased from 79% in 2019 to 70% in 2022, while the Asian population increased from 5% to 11%. The Hispanic population grew from 4% to 10% during this period. These demographic changes could influence the demand for diverse housing options, including affordable units.
The LIHTC program has played a crucial role in providing affordable housing in zip code 55055, with 120 low-income units across two projects. While these units represent a modest portion of the estimated housing stock, they contribute significantly to the area's affordable housing needs. The changing demographics, including population growth and increasing diversity, suggest an ongoing need for affordable housing options in this community. The LIHTC investments made over the past decade reflect efforts to address this need, though the full extent of affordable housing availability may depend on additional programs and initiatives not captured in this analysis.
