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Affordable Housing in Louisville's Central Business District: A Two-Decade Evolution
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 Central Business District of Louisville, Kentucky, contains a significant inventory of Low-Income Housing Tax Credit (LIHTC) funded affordable housing. This neighborhood has 788 total units in LIHTC-funded projects, with 572 designated as low-income units. Based on the 2022 population of 4,602 and using the national average household size, there are an estimated 1,763 housing units in the neighborhood. The LIHTC-funded affordable housing comprises approximately 44.7% of the estimated housing inventory, indicating a substantial presence of affordable housing options in this area.
The LIHTC program has invested significantly in this neighborhood, with project tax credits totaling $4,167,045. This equates to an average federal funding of approximately $5,288 per unit in LIHTC-funded projects. The neighborhood has a history of affordable housing development spanning nearly two decades, with the earliest project, Russell Phase I, Ltd., completed in 1991, and the most recent projects, Clarksdale Rental IV and Clarksdale Rental III, finished in 2009.
The 1990s saw the most affordable housing activity, with 11 projects completed during this decade. Notable projects from this period include Saint Martin Apartments, Phoenix Hill Apartments, and Jefferson Apartments I, II, and III. The early 2000s also saw significant development, including the Russell Emerging - B project in 2001 and the Liberty Green (formerly Clarksdale I) project in 2007. The LIHTC-funded projects in this neighborhood offer a range of unit sizes, including 201 one-bedroom units, 325 two-bedroom units, 116 three-bedroom units, and 77 four-bedroom units.
Over the past decade, the neighborhood has experienced demographic shifts. The population increased from 3,569 in 2015 to 4,602 in 2022, a 29% growth. Median income rose from $17,954 in 2015 to $27,184 in 2022, a 51% increase. The racial composition changed as well. The proportion of Black residents decreased from 46% in 2015 to 33% in 2022, while the White population increased from 46% to 53%. The Asian population grew from 2% to 4%, and the Hispanic population increased from 4% to 6%.
Despite these demographic changes and rising median income, no new LIHTC projects have been completed since 2009. This may indicate that the existing affordable housing stock is meeting current needs, or that other factors are influencing affordable housing development in the area.
The Central Business District of Louisville has a substantial inventory of LIHTC-funded affordable housing, covering nearly half of the estimated housing units. The neighborhood experienced significant affordable housing development from 1991 to 2009, with a diverse range of unit sizes to accommodate various household needs. While the area has seen population growth, increased median income, and shifts in racial composition over the past decade, no new LIHTC projects have been completed since 2009. This analysis provides insight into the affordable housing landscape of this urban neighborhood and its evolution over time.
