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Affordable Housing Analysis in Zip Code 55454: Significant LIHTC Presence in Minneapolis
CATEGORY
Affordable Housing
DATA
LIHTC Projects
Median Income
Racial Distributions
Population
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Affordable Housing
LIHTC Projects
Median Income
Racial Distributions
Population
Zip code 55454 in Minneapolis, Minnesota, exhibits a substantial presence of Low-Income Housing Tax Credit (LIHTC) funded affordable housing. This area contains 1,791 total units in LIHTC-funded projects, with 254 units specifically designated as low-income. Based on the 2022 population of 9,313 and an estimated housing inventory of 3,568 units, LIHTC-funded affordable housing comprises approximately 50.2% of the zip code's housing inventory. This percentage indicates that LIHTC projects play a significant role in the area's housing landscape.
The LIHTC projects in zip code 55454 have received $5,133,082 in tax credits, averaging about $2,866 in federal funding per unit. This zip code accounts for 1.76% of Minnesota's total LIHTC funding, suggesting a considerable concentration of affordable housing investment in this small area.
The affordable housing presence in this zip code spans over a decade and a half. The initial LIHTC project, Riverside Homes, was completed in 1999, while the most recent, Five15 On The Park, was finished in 2015. The 2010s saw the most activity, with two projects completed: Riverside Plaza in 2011 and Five15 On The Park in 2015.
The LIHTC-funded projects in zip code 55454 offer a diverse range of unit types. Out of the 1,791 total units, there are 226 efficiencies, 697 one-bedroom units, 732 two-bedroom units, 126 three-bedroom units, and 9 four-bedroom units. This distribution indicates a focus on accommodating various household sizes, with a predominance of one and two-bedroom apartments.
Over the past decade, zip code 55454 has experienced significant demographic changes. The population has grown from 7,251 in 2010 to 9,313 in 2022, a 28.4% increase. Median income has also risen substantially, from $17,335 in 2013 to $30,173 in 2022, indicating improving economic conditions for residents.
Racial demographics have shifted as well. The Black population has increased from 49% in 2013 to 61% in 2022, while the White population has decreased from 35% to 25% during the same period. Asian and Hispanic populations have remained relatively stable, with slight decreases.
These demographic trends, particularly the population growth and increasing median income, may have influenced the development of LIHTC projects in the area. The rising population likely increased demand for affordable housing, while the improving economic conditions might have made the area more attractive for investment in such projects.
Zip code 55454 in Minneapolis demonstrates a significant presence of LIHTC-funded affordable housing, covering about half of the estimated housing inventory. The area has seen consistent investment in affordable housing over the years, with projects spanning from 1999 to 2015. The diverse unit mix caters to various household sizes, reflecting the changing demographics of the area. The zip code's population growth, increasing median income, and shifting racial composition have likely influenced the development and demand for affordable housing in this urban area.
