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Affordable Housing in Billings' Southside: LIHTC Impact and Demographic Shifts
CATEGORY
Affordable Housing
DATA
LIHTC Projects
Median Income
Racial Distributions
Population
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Affordable Housing
LIHTC Projects
Median Income
Racial Distributions
Population
The Southside neighborhood of Billings, Montana, exhibits a notable presence of Low-Income Housing Tax Credit (LIHTC) funded affordable housing. A total of 93 units exist in LIHTC-funded projects, including 75 designated low-income units. This represents approximately 6.3% of the neighborhood's housing stock, based on the 2022 population of 3,880 and an estimated housing inventory of 1,487 units.
The LIHTC program has invested significantly in Southside, with project tax credits totaling $635,899. This equates to an average federal funding of about $6,837 per unit across all LIHTC-funded projects in the neighborhood. The first LIHTC project, Agape Housing, was completed in 1998, while the most recent, Southern Lights, was finished in 2007. This nine-year span indicates a consistent effort to develop affordable housing in the area.
The 2000s saw the most LIHTC activity, with two projects completed during this decade: Fraser Tower Apartments in 2006 and Southern Lights in 2007. The housing mix in these LIHTC projects is diverse, with a predominance of one-bedroom units (64), followed by two-bedroom (19), three-bedroom (7), and four-bedroom (3) units. This distribution suggests a focus on accommodating various household sizes, from individuals to families.
Over the past decade, Southside has experienced demographic shifts that may relate to its affordable housing landscape. The population has decreased from 4,440 in 2018 to 3,880 in 2022, a decline of about 12.6%. Despite this population decrease, the median income has risen from $31,908 in 2018 to $40,213 in 2022, an increase of approximately 26%.
Racial demographics have remained relatively stable, with a slight increase in the white population from 66% in 2018 to 68% in 2022. The Hispanic population has seen a small decrease from 15% to 13%, while the Native American population has remained steady at around 13%. These demographic changes, particularly the rising median income, may partially explain why no new LIHTC projects have been developed in the last decade.
The Southside neighborhood of Billings has a modest LIHTC-funded affordable housing presence, covering about 6.3% of the estimated housing stock. The neighborhood saw consistent development of affordable housing from 1998 to 2007, with a mix of unit sizes to accommodate diverse household needs. While the population has decreased slightly in recent years, median income has increased, potentially impacting the perceived need for additional affordable housing development. The stable racial demographics suggest that the existing affordable housing continues to serve a diverse community.
