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Affordable Housing in Milwaukee Junction: LIHTC Impact on an Industrial 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
Milwaukee Junction, a neighborhood in Detroit, Michigan, has a significant industrial history dating back to the early 20th century. The area has experienced substantial changes over time, including the development of affordable housing through the Low-Income Housing Tax Credit (LIHTC) program. Currently, the neighborhood contains 39 LIHTC-funded affordable housing units, all of which are designated as low-income units. Based on the estimated housing inventory of 712 units, LIHTC-funded affordable housing comprises approximately 5.5% of the neighborhood's housing stock.
The LIHTC program has invested $1,200,604 in tax credits for affordable housing projects in Milwaukee Junction. This investment translates to an average federal funding of $30,785 per unit. Two notable LIHTC projects exist in the neighborhood: Melrose Square Homes, completed in 2006, and Piquette Square, completed in 2010. These developments indicate that affordable housing has been present in the neighborhood for at least 17 years.
The 2000s witnessed the most affordable housing development in Milwaukee Junction, with both projects being completed during this decade. Melrose Square Homes provides 24 units, including nine three-bedroom and 15 four-bedroom units, while Piquette Square offers 15 one-bedroom units. This diverse mix of unit sizes accommodates different household compositions within the low-income population.
Milwaukee Junction's population has fluctuated over the last decade, with a general downward trend from 2,461 residents in 2017 to 1,858 in 2022. The median income has also shown variability, ranging from a high of $29,469 in 2019 to a low of $19,719 in 2022. Despite these economic challenges, no new LIHTC projects have been developed in the neighborhood since 2010.
The racial composition of Milwaukee Junction has remained predominantly Black, although the percentage has decreased slightly from 78% in 2017 to 74% in 2022. Concurrently, there has been a small increase in racial diversity, with slight growth in Asian, Pacific Islander, and multi-racial populations.
Milwaukee Junction's affordable housing landscape is characterized by two LIHTC projects providing 39 low-income units, representing about 5.5% of the estimated housing stock. The neighborhood has not seen new LIHTC developments in the last decade, despite fluctuations in population and median income. While the existing LIHTC-funded housing contributes to addressing affordability needs, the changing demographics and economic conditions of the neighborhood may necessitate further assessment of affordable housing requirements in the future.
