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Affordable Housing in Chicago's Near West Side: A Long-Term LIHTC Investment
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 Near West Side neighborhood in Chicago, Illinois, has a substantial inventory of affordable housing funded through the Low-Income Housing Tax Credit (LIHTC) program. This area contains 1,438 total units in LIHTC-funded projects, with 1,359 of these designated as low-income units. Based on the 2022 population of 16,125 and an estimated 6,178 housing units, the LIHTC-funded affordable housing comprises approximately 23.3% of the neighborhood's estimated housing inventory. This percentage indicates a significant presence of affordable housing in the area, exceeding the typical target of 15-20% for a well-balanced community.
The LIHTC program has made substantial investments in the Near West Side, with project tax credits totaling $8,854,233. This equates to an average federal funding of about $6,157 per unit in LIHTC-funded projects. The neighborhood has a prolonged history of affordable housing development, with the earliest project, Boulevard Commons, completed in 1987, and the most recent, City Gardens - 8116, finished in 2016. This 29-year span demonstrates a sustained commitment to affordable housing in the area.
The 2000s witnessed the most affordable housing activity, with several notable projects completed. These include Rockwell Gardens/West End I and West End in 2004, followed by West End 1B and Rockwell Gardens Jackson Square in 2006. The early 2010s also saw significant development with West End Phase II and East Lake West End II both completed in 2011.
The LIHTC-funded housing stock in the Near West Side offers a diverse range of unit types. Of the 1,438 total units, there are 204 efficiencies, 366 one-bedroom units, 340 two-bedroom units, 463 three-bedroom units, and 21 four-bedroom units. This distribution suggests a focus on accommodating various household sizes, with a notable emphasis on larger families given the high number of three-bedroom units.
Some LIHTC projects in the neighborhood cater to specific populations. For instance, St. Andrew's Court, completed in 1998, targets formerly incarcerated individuals, while St Andr, also completed in 1998, focuses on released offenders. These projects highlight efforts to provide housing options for populations that may face additional barriers in securing stable housing.
Over the past decade, the Near West Side has experienced notable demographic shifts. The population has grown from 14,345 in 2013 to 16,125 in 2022, indicating increasing demand for housing. Median income has also risen significantly, from $75,868 in 2013 to $86,671 in 2022, suggesting potential gentrification pressures.
Racial demographics have shifted as well. The Black population decreased from 42% in 2013 to 35% in 2022, while the Asian population increased from 8% to 13%. The White population remained relatively stable, moving from 42% to 40%. These changes may reflect evolving housing needs and affordability challenges in the neighborhood.
The Near West Side neighborhood in Chicago demonstrates a robust LIHTC-funded affordable housing inventory, covering nearly a quarter of its estimated housing stock. With a diverse range of unit types and projects targeting specific populations, the area has shown a consistent commitment to affordable housing over nearly three decades. However, demographic shifts, including population growth and rising median incomes, suggest ongoing affordability challenges that may necessitate continued attention to maintaining and expanding affordable housing options in the future.
