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Raleigh's LIHTC-Funded Affordable Housing: A Three-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
Raleigh, North Carolina's capital city, has a substantial inventory of affordable housing funded through the Low-Income Housing Tax Credit (LIHTC) program. The city has 6,497 total units in LIHTC-funded projects, with 5,101 of these designated as low-income units. Based on Raleigh's 2022 population of 477,084 and an estimated housing inventory of 182,791 units, LIHTC-funded affordable housing represents approximately 3.6% of the city's total housing stock.
The city has received $34,719,974 in project tax credits for affordable housing through the LIHTC program. With approximately 532 projects, this translates to an average of about $65,263 in federal funding per project. When considering the total units, the average federal funding per unit is approximately $5,343. Raleigh holds 7.96% of North Carolina's total LIHTC funding, indicating its significant role in the state's affordable housing efforts.
Affordable housing through LIHTC has been present in Raleigh for over three decades. The first recorded LIHTC project, Glascock Manor, was completed in 1987, while more recent additions include The Summit At Sawyer, The Sussex, and Toulon Place, all completed in 2022. The 1990s saw a surge in LIHTC project completions, with numerous projects like Fox Hollow, Berkshire Downs, and Capital Towers being built during this period.
The LIHTC-funded housing in Raleigh offers a range of unit types. Of the total 6,497 units, there are 148 efficiencies, 1,465 one-bedroom units, 2,959 two-bedroom units, 1,010 three-bedroom units, and 29 four-bedroom units. This distribution suggests a focus on accommodating various household sizes, with an emphasis on one and two-bedroom units.
Examining demographic trends over the past decade, Raleigh's population has grown steadily, increasing from 431,897 in 2013 to 477,084 in 2022. Median income has also risen significantly, from $55,170 in 2013 to $75,424 in 2022, representing a 36.7% increase. The racial distribution has remained relatively stable, with a slight decrease in the White population (from 53% to 52%) and a small increase in the Hispanic population (from 11% to 12%) between 2013 and 2022.
These demographic shifts, particularly the population growth and rising median income, may have influenced the continued development of LIHTC projects in Raleigh. The stable racial distribution suggests that affordable housing needs have remained consistent across different communities.
In summary, Raleigh's LIHTC-funded affordable housing inventory represents a significant investment in addressing the city's housing needs. While it covers a modest portion of the total housing stock, the consistent development of new projects over the years indicates an ongoing commitment to affordable housing. The diversity of unit types and the alignment with demographic trends suggest that these projects are striving to meet the varied needs of Raleigh's low-income residents. As the city continues to grow and evolve, monitoring and adapting the affordable housing strategy will be crucial to ensuring it meets the changing needs of the population.
