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New Center's Affordable Housing: Demographic Shifts in a Historic Detroit 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
New Center, a neighborhood in Detroit, Michigan, is characterized by its historic architecture and cultural significance. The neighborhood's Low-Income Housing Tax Credit (LIHTC) funded affordable housing inventory comprises 76 low-income units, all part of a single project. This affordable housing stock represents approximately 8.6% of the estimated 883 housing units in the neighborhood, based on the 2022 population of 2,305 and the national average household size of 2.61.
The LIHTC program has invested $347,621 in tax credits for affordable housing in New Center, averaging approximately $4,574 per unit. The sole LIHTC funded project, New Center Pavillion, was completed in 2007 and has been providing affordable housing options for over 15 years. New Center Pavillion offers 4 one-bedroom units and 36 two-bedroom units, suggesting a focus on accommodating small families or couples.
Over the past decade, New Center has experienced significant demographic shifts. The population decreased from 3,424 in 2015 to 2,305 in 2022, a decline of about 32.7%. Despite this population decrease, the median income increased substantially, rising from $15,956 in 2015 to $32,503 in 2022, more than doubling over this period.
The racial composition of the neighborhood has also changed notably. The percentage of Black residents decreased from 79% in 2015 to 60% in 2022, while the White population increased from 17% to 27% during the same period. The Asian population, which was not represented in 2015, grew to 5% by 2022.
These demographic changes, particularly the rising median income and shifting racial composition, may indicate ongoing gentrification in the neighborhood. The absence of new LIHTC projects in the last decade could be related to these changes, as the increasing median income might suggest a reduced need for additional low-income housing units.
New Center's affordable housing landscape is characterized by a single LIHTC project, New Center Pavillion, which provides 76 low-income units. This project, completed in 2007, represents about 8.6% of the neighborhood's estimated housing stock. The neighborhood has experienced significant demographic changes over the past decade, including population decline, substantial median income growth, and shifts in racial composition. These changes may have influenced the lack of new LIHTC developments in recent years. The existing LIHTC funded housing continues to play a crucial role in providing affordable options in a neighborhood undergoing socioeconomic transformation.
