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Affordable Housing Landscape in Zip Code 56425: A Three-Decade LIHTC Investment Analysis
CATEGORY
Affordable Housing
DATA
LIHTC Projects
Median Income
Racial Distributions
Population
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Affordable Housing
LIHTC Projects
Median Income
Racial Distributions
Population
Zip code 56425 in Baxter, Minnesota, has a significant presence of Low-Income Housing Tax Credit (LIHTC) funded affordable housing. The area contains 106 total units in LIHTC-funded projects, with 102 designated as low-income units. Based on the 2022 population of 7,623 and using the national average household size, an estimated 2,921 housing units exist in this zip code. The LIHTC-funded affordable housing represents approximately 3.6% of the estimated housing inventory in the area.
The LIHTC program has invested $1,063,373 in tax credits for affordable housing projects in zip code 56425. This equates to an average federal funding of $10,032 per unit. This zip code accounts for 0.36% of the total LIHTC funding allocated to Minnesota.
Affordable housing has been present in this community for nearly three decades. The first LIHTC project, Excelsior Court, was completed in 1993, and the most recent, Sprucewood Townhomes, was finished in 2014. The 2010s saw the most activity in affordable housing development, with two projects completed: Grand Oaks Court Townhomes in 2010 and Sprucewood Townhomes in 2014.
The LIHTC-funded housing stock in zip code 56425 primarily consists of multi-bedroom units. There are 24 one-bedroom units, 55 two-bedroom units, 8 three-bedroom units, and 1 four-bedroom unit. This distribution indicates a focus on accommodating families and households of various sizes.
Over the past decade, the population in zip code 56425 has grown steadily, increasing from 6,915 in 2013 to 7,623 in 2022. This 10.2% growth may indicate an increasing demand for housing, including affordable options. Concurrently, the median income has risen from $58,166 in 2013 to $73,649 in 2022, representing a 26.6% increase. This income growth might suggest improving economic conditions, but it could also potentially widen the affordability gap for lower-income residents.
The racial composition of zip code 56425 has remained relatively stable, with a slight decrease in the white population from 97% in 2013 to 96% in 2022. There has been a small increase in diversity, with slight upticks in Hispanic, Black, and Native American populations. This gradual diversification could potentially influence future affordable housing needs and considerations.
Zip code 56425 has an established foundation of LIHTC-funded affordable housing, covering about 3.6% of the estimated housing inventory. The area has seen consistent investment in affordable housing over nearly three decades, with the most recent projects completed in the 2010s. The housing stock is diverse, catering to various household sizes. While the population and median income have grown over the past decade, the racial composition has remained relatively stable with slight increases in diversity. These demographic trends may influence future affordable housing needs in the area.
