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Affordable Housing in Downtown Memphis: Three Decades of 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
Downtown Memphis exhibits a significant presence of affordable housing funded through the Low-Income Housing Tax Credit (LIHTC) program. The area contains 3,805 total units in LIHTC-funded projects, with 3,478 designated as low-income units. This inventory of affordable housing is crucial for meeting residents' needs.
Based on the 2022 population of 49,491 and the national average household size of 2.61, an estimated 18,962 housing units exist in the neighborhood. LIHTC-funded affordable housing units represent approximately 20.1% of this estimated housing inventory, aligning with targets for a well-balanced community.
The LIHTC program has invested $32,820,798 in project tax credits in Downtown Memphis, averaging about $8,625 per unit in federal funding. This demonstrates a substantial commitment to affordable housing in the area. The first LIHTC project, Saxon Street Development, was completed in 1987, while more recent projects like South City Phase I and Patterson Flats were finished in 2019, illustrating a 32-year commitment to affordable housing.
The 2000s saw the most affordable housing development activity, with multiple projects completed throughout the decade. Notable projects from this period include College Park Senior, Uptown Hope VI Project: Greenlaw Place Apts, and Riverbend Place.
The neighborhood's LIHTC-funded housing stock offers a diverse range of unit types. Out of the 3,805 total units, there are 8 efficiencies, 1,358 one-bedroom units, 1,285 two-bedroom units, 471 three-bedroom units, and 281 four-bedroom units. This variety caters to different household sizes and needs within the community.
Over the past decade, Downtown Memphis has experienced demographic shifts. The population decreased from 52,585 in 2014 to 49,491 in 2022, a decline of about 5.9%. Despite this population decrease, the median income increased significantly, from $27,273 in 2014 to $36,157 in 2022, representing a 32.6% increase.
Racial demographics have also shifted slightly. The Black population decreased from 77% in 2014 to 73% in 2022, while the White population increased from 17% to 21% during the same period. Other racial groups have remained relatively stable.
These demographic changes, particularly the rising median income, may have influenced the pace of LIHTC development in recent years. The last recorded LIHTC projects were completed in 2019, which could reflect changing housing needs in the neighborhood.
Downtown Memphis has a substantial inventory of LIHTC-funded affordable housing, representing about 20.1% of the estimated housing stock. This aligns with recommended targets for affordable housing. The neighborhood has benefited from over three decades of LIHTC investment, with the most active period being the 2000s. The diverse range of unit types caters to various household needs. While the population has slightly decreased in recent years, median income has risen significantly, potentially impacting the demand for affordable housing. These demographic shifts, along with changes in racial composition, provide context for understanding the evolving housing needs of Downtown Memphis.
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