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Affordable Housing in Cedar-Riverside: LIHTC Impact on a Changing Neighborhood
CATEGORY
Affordable Housing
DATA
LIHTC Projects
Median Income
Racial Distributions
Population
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Affordable Housing
LIHTC Projects
Median Income
Racial Distributions
Population
Cedar-Riverside, a neighborhood in Minneapolis, Minnesota, has a significant Low-Income Housing Tax Credit (LIHTC) funded affordable housing inventory. The neighborhood contains 1,791 units in LIHTC-funded projects, with 254 designated as low-income units. Based on the 2022 population of 9,774 and using the national average household size of 2.61, the estimated number of housing units in the neighborhood is approximately 3,745. LIHTC-funded affordable housing comprises about 47.8% of the estimated housing inventory, indicating a substantial presence of affordable housing in Cedar-Riverside.
The LIHTC program has invested significantly in Cedar-Riverside, with project tax credits totaling $5,133,082. This equates to an average federal funding of approximately $2,866 per unit in LIHTC-funded projects. The neighborhood has experienced consistent development of affordable housing over time, with projects completed from 1999 to 2015. The earliest project, Riverside Homes, was completed in 1999, while the most recent, Five15 On The Park, was finished in 2015. This 16-year span demonstrates a sustained commitment to affordable housing in the area.
The 2010s saw the most affordable housing development activity, with three out of four projects completed during this decade. Notable projects include Riverside Plaza (2011) and Five15 On The Park (2015). The LIHTC-funded housing stock in Cedar-Riverside offers a diverse range of unit types, including 226 efficiencies, 697 one-bedroom units, 732 two-bedroom units, 126 three-bedroom units, and 9 four-bedroom units. This variety caters to different household sizes and needs within the community.
Cedar-Riverside has experienced significant demographic changes over the past decade. The population has grown from 7,361 in 2013 to 9,774 in 2022, a 32.8% increase. This population growth may have contributed to the need for additional affordable housing units, as evidenced by the LIHTC projects completed during this period.
Median income in the neighborhood has increased from $17,081 in 2013 to $23,534 in 2022, an increase of about 37.8%. Despite this growth, the median income remains relatively low, underscoring the continued need for affordable housing options.
Racial demographics have also shifted, with the Black population increasing from 44% in 2013 to 57% in 2022, while the White population decreased from 39% to 27% during the same period. The Asian population has remained relatively stable at around 11%. These changes in racial composition may influence the specific needs and preferences for affordable housing in the neighborhood.
Cedar-Riverside demonstrates a strong presence of LIHTC-funded affordable housing, with nearly half of its estimated housing inventory covered by such projects. The neighborhood has seen consistent development of affordable housing over a 16-year period, with a particular focus in the 2010s. The diverse range of unit types in LIHTC projects accommodates various household sizes and needs. The significant population growth, modest income increases, and shifting racial demographics over the past decade correlate with the continued development of affordable housing in the area. These factors collectively underscore the importance of LIHTC-funded projects in meeting the evolving housing needs of Cedar-Riverside's residents.
