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Affordable Housing Impact on Baker Neighborhood: A Three-Decade Analysis
CATEGORY
Affordable Housing
DATA
LIHTC Projects
Median Income
Racial Distributions
Population
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Affordable Housing
LIHTC Projects
Median Income
Racial Distributions
Population
Baker, a neighborhood in Denver, Colorado, has a significant presence of Low-Income Housing Tax Credit (LIHTC) funded affordable housing. The area has 388 total units in LIHTC-funded projects, with 334 designated as low-income units. Based on the 2022 population of 6,404 and estimated 2,454 housing units, LIHTC-funded affordable housing comprises approximately 15.8% of the neighborhood's housing inventory. This aligns with the target percentage for a well-balanced community.
The LIHTC program has invested significantly in Baker, with project tax credits totaling $3,333,348. This equates to an average federal funding of about $8,592 per unit in LIHTC-funded projects. The neighborhood has seen consistent development of affordable housing over three decades, with the earliest project completed in 1990 and the most recent finished in 2020.
The 2010s saw the most activity in affordable housing development, with two projects completed during this decade. The distribution of units in these projects primarily focuses on smaller households, with 78 efficiencies and 207 one-bedroom units. There are also 37 two-bedroom and 3 three-bedroom units, providing some options for families.
Over the past decade, Baker has experienced significant demographic shifts coinciding with the development of LIHTC projects. The population grew from 5,758 in 2015 to 6,404 in 2022, an 11.2% increase. During this period, the median income rose from $63,273 in 2015 to $94,699 in 2022, a 49.7% increase.
Racial demographics have also shifted notably. The Hispanic population decreased from 34% in 2015 to 17% in 2022, while the white population increased from 56% to 64% over the same period. The proportion of residents identifying as two or more races doubled from 4% to 8%.
These demographic changes, particularly the rising median income, suggest a neighborhood undergoing gentrification. The continued development of LIHTC projects, including the most recent in 2020, indicates an ongoing effort to maintain affordable housing options in an increasingly affluent area.
Baker's LIHTC-funded affordable housing inventory represents a significant portion of the neighborhood's housing stock, closely aligning with recommended targets for a balanced community. The steady development of these projects over three decades demonstrates a long-term commitment to affordable housing in the area. The focus on smaller units suggests a response to changing household compositions and urban living preferences. While the neighborhood has experienced substantial income growth and demographic shifts, the continued investment in LIHTC projects indicates an effort to maintain economic diversity and housing affordability in a rapidly changing urban environment.
