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Affordable Housing in Oakwood Place: A Longitudinal Analysis of LIHTC Impact
CATEGORY
Affordable Housing
DATA
LIHTC Projects
Median Income
Racial Distributions
Population
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Affordable Housing
LIHTC Projects
Median Income
Racial Distributions
Population
Oakwood Place, a neighborhood in Birmingham, Alabama, contains 59 Low-Income Housing Tax Credit (LIHTC) funded affordable housing units. These units, all designated as low-income, constitute approximately 6.6% of the estimated 888 housing units in the neighborhood, based on the 2022 population of 2,318 and the national average household size of 2.61.
The LIHTC program has invested $85,365 in tax credits for affordable housing projects in Oakwood Place, averaging approximately $1,447 per unit. The sole LIHTC-funded project, Deer Park Apartments, was completed in 1993 and has provided housing options for nearly three decades. The project primarily consists of two-bedroom units (58) with one three-bedroom unit.
Oakwood Place has undergone demographic changes over the past decade. The population decreased from 2,599 in 2013 to 2,318 in 2022, a 10.8% decline. However, the median income increased significantly from $18,821 in 2013 to $43,605 in 2022, a 131.7% increase. The racial composition has also shifted, with the Black population decreasing from 97% to 81%, while Hispanic, Native American, and multi-racial populations have increased.
The demographic changes in Oakwood Place, particularly the rise in median income, may partially explain the absence of new LIHTC projects since 1993. The increasing income levels could suggest a reduced need for additional affordable housing units, although other factors and housing programs may also influence this trend.
Oakwood Place's affordable housing landscape is characterized by the single LIHTC project, Deer Park Apartments. While the 59 affordable units represent a modest portion of the estimated housing inventory, they serve a vital role in providing housing options for low-income residents. The neighborhood has experienced notable demographic changes over the past decade, including population decline, significant income growth, and increasing racial diversity.
The long-standing presence of Deer Park Apartments underscores the ongoing importance of affordable housing in maintaining a diverse and inclusive community in Oakwood Place. Despite the lack of new LIHTC developments in recent years, the existing units continue to contribute to the neighborhood's housing mix and address the needs of low-income residents.
