Asheville, North Carolina has long captivated newcomers with its vibrant arts scene, stunning mountain vistas, and progressive community spirit. However, this desirable destination faced an affordable housing crisis even before Hurricane Helene devastated the region in 2024. Now, as the community rebuilds, addressing housing affordability has become more urgent than ever. Despite significant challenges, Asheville is responding with ambitious plans and substantial investments to create housing opportunities for its workforce.

The Affordable Housing Challenge

The numbers paint a stark picture. During the COVID-19 pandemic, Asheville experienced sharp increases in rent, property values, and home sale prices that outpaced wage growth. Many workers essential to the city’s thriving tourism and service economy found themselves priced out of the communities they serve. The housing shortage became so severe that city leaders identified it as their top priority in post-Helene recovery surveys.

In November 2024, Asheville voters approved a $20 million general obligation bond specifically for affordable housing—a clear signal of community commitment to addressing this crisis. The city’s goal is ambitious: building 14,000 affordable units over the next 25 years.

A Comprehensive New Housing Plan

In September 2024, Asheville unveiled its most comprehensive affordable housing plan to date, updating strategies last revised in 2015. The plan establishes two priority areas: incentivizing efforts that meet the greatest needs and helping existing residents stay in Asheville by preventing displacement.

Sasha Vrtunski, the city’s Affordable Housing Officer, emphasizes that the plan represents a holistic approach combining new construction, preservation of existing affordable units, and equitable outreach to those with the greatest needs. This framework guides city decision-making for the next five to ten years.

Major Projects Coming Online

Several significant affordable housing developments are advancing through the pipeline. In June 2025, the city committed over $5 million in additional tax incentives and low-interest loans to a 221-apartment complex at 319 Biltmore Avenue, just south of downtown. This project, which faced construction cost increases and delays, demonstrates the city’s willingness to provide necessary support to bring affordable units to completion.

Harmony Housing Affordable Development won approval to develop a $74.5 million affordable housing community at 50-52 Coxe Avenue, featuring over 200 units for residents earning between 20% to 80% of Area Median Income. The development will include ground-floor retail, community spaces, and public art, creating a mixed-use environment that strengthens the urban fabric.

Mountain Housing Opportunities is completing Starpoint, a 60-unit project on Restaurant Court Road behind the Mountaineer Inn. With rents ranging from $300 to $1,000 monthly, this four-story development represents the first large-scale affordable project with studios, one-bedroom, and two-bedroom units built by MHO in over seven years.

Innovative Financing Strategies

Recognizing that high interest rates have stalled many developers, Asheville is pursuing creative financing solutions. City staff proposed investing $10 million with Self-Help Credit Union, which will combine with $40 million from Dogwood Health Trust to create a construction loan pool. This larger fund can offer developers below-market interest rates, making projects financially feasible that would otherwise remain shelved.

The city leverages multiple funding sources including Community Development Block Grants, HOME Investment Partnership funds, and federal Low-Income Housing Tax Credits administered through the North Carolina Housing Finance Agency. The combination of city, county, state, and federal resources creates the complex financial structures necessary to make affordable housing pencil out for developers.

Housing Authority and Rental Assistance

The Housing Authority of the City of Asheville has grown to encompass 10 public housing developments with 1,534 units, 248 special program units, and administers Housing Choice Vouchers subsidizing housing for more than 1,355 low-income individuals and families. For many residents, these programs provide the only pathway to stable, affordable housing in an increasingly expensive market.

Mountain Housing Opportunities, a nonprofit celebrating over 35 years of service, continues expanding its portfolio of affordable rentals and homeownership opportunities across Buncombe, Madison, Henderson, and Haywood counties. Their work demonstrates the vital role community development corporations play in addressing housing needs.

Rebuilding Stronger

Hurricane Helene’s devastation created additional housing pressures as displaced residents sought shelter and damaged homes needed repair or replacement. However, the disaster also galvanized community support for affordable housing initiatives. Post-Helene surveys consistently showed citizens demanding urgent action on affordable housing as part of recovery efforts.

The city responded by fast-tracking approvals for affordable projects and increasing funding allocations. The recent approval of 126 affordable housing units scheduled to break ground in winter 2025 represents just one example of accelerated action. With 80% of units restricted to residents earning 80% or less of Area Median Income and a 30-year deed restriction ensuring long-term affordability, these projects deliver exactly what the community needs.

Getting on the Path to Affordable Housing

For those seeking affordable housing in Asheville, start with the Housing Authority of the City of Asheville to learn about public housing and voucher programs. Mountain Housing Opportunities maintains interest lists for their developments and can provide information about upcoming opportunities.

The city’s website offers a comprehensive affordable housing guide with local rental property resources, homeownership expense calculators, and links to various assistance programs. Organizations like Habitat for Humanity Asheville provide homeownership pathways for qualified families willing to invest sweat equity in building their futures.

Hope Amid Challenges

While Asheville’s housing crisis won’t be solved overnight, the combination of voter-approved bonds, innovative financing mechanisms, major developments in the pipeline, and community-wide commitment provides genuine cause for optimism. The city’s willingness to invest public resources, streamline approvals, and partner with nonprofit developers demonstrates serious intent to address this crisis.

For workers who keep Asheville running—from teachers to hospitality staff, nurses to artists—these investments represent more than statistics. They represent the possibility of staying in the community they love and contribute to, rather than being displaced by market forces beyond their control. As Asheville rebuilds from hurricane devastation, ensuring affordable housing for all residents stands as a cornerstone of the city’s recovery and future prosperity.

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