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Affordable Housing in Falls of Neuse: A Long-standing LIHTC Project Amidst Demographic Changes
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 Falls of Neuse neighborhood in Raleigh, North Carolina, features one Low-Income Housing Tax Credit (LIHTC) funded affordable housing project. This project, named Capital Towers II, comprises 144 units, with 9 designated as low-income units. Completed in 1993, it represents approximately 4% of the neighborhood's total housing stock, estimated at 3,570 units in 2022.
Capital Towers II received $435,614 in tax credits, averaging about $3,025 per unit in federal funding. The project offers a diverse mix of unit sizes: 54 efficiencies, 36 one-bedroom units, and 54 three-bedroom units. This variety aims to accommodate different household compositions, from individuals to families.
Over the past decade, Falls of Neuse has experienced demographic shifts. The population increased from 8,195 in 2013 to 9,319 in 2022. Concurrently, the median income rose significantly from $63,104 to $83,889, indicating an overall improvement in economic conditions for the neighborhood.
Racial demographics in Falls of Neuse have remained relatively stable. The white population decreased slightly from 68% in 2013 to 63% in 2022, while the Hispanic population increased modestly from 16% to 20%. The Black population has consistently remained around 11% during this period.
Despite these demographic changes, no new LIHTC projects have been developed in the neighborhood since 1993. This lack of new affordable housing developments may be attributed to various factors, including the rising median income, which could suggest a reduced need for additional affordable housing in recent years.
In summary, Falls of Neuse's single LIHTC project, Capital Towers II, has provided affordable housing options for nearly three decades. While it constitutes a small percentage of the neighborhood's estimated housing stock, it offers diverse unit sizes to meet different household needs. The neighborhood has experienced population growth and a significant increase in median income over the past decade, potentially influencing the absence of new LIHTC developments. The racial composition has remained relatively stable, with a slight increase in diversity. These demographic trends provide context for understanding the affordable housing landscape in Falls of Neuse and may inform future housing policy decisions for the area.
