Phoenix has the largest disparity between needy households and low-income housing tax credit (LIHTC) units, according to a new report from MPF Research, the intelligence arm of RealPage.
The city has just 6.08 housing credit units per 100 low-income households, ranking it the lowest out of the top 50 apartment markets studied by the firm. Phoenix was followed by Pittsburgh (6.13) and Syracuse, N.Y., (6.27).
Several notable LIHTC developments, including Cedar Crossing by Native American Connections, have recently opened in Phoenix.
Looking at the other end, LIHTC apartments were the most prevalent in Richmond, Va., where there are 22 housing credit units for every 100 low-income households, according to researchers. Kansas City was next with 21.68 units followed by Virginia Beach/Norfolk, Va., with 21.05 units.
However, in every single metro, designated affordable housing units still fell well short of the needed volume, according MPF Research.
“It’s not a shock that every single place you look at does not have enough (affordable) units, but the difference from one place to another was bigger than I would have anticipated,” says Greg Willett, chief economist at RealPage, citing how the difference is more than three times between the markets at the top and bottom of the list.
Although LIHTC apartments can serve households earning up to 60% of the area median income (AMI), they often target individuals and families earning less. The new study focuses on the neediest households, those earning no more than 30% of the AMI.
“Looking at the lists, no clear trends emerge that indicate why designated affordable housing is more scarce in some areas than in others,” says the report.