Two more affordable housing projects took a step toward the construction stage in Asheville, and one of them could have crews on site before the end of 2026.
On Tuesday, Oct. 13, Asheville City Council authorized financing for a 112-unit apartment development near Biltmore Avenue and approved a rezoning for 23 Habitat for Humanity homes in the Shiloh neighborhood, 828 News NOW reported. Together, the two projects would add 135 affordable homes.
319 Biltmore B
The larger project is 319 Biltmore B, a planned 112-unit apartment complex at 4 John Walker Ave., near Biltmore Avenue.
Council authorized the Housing Authority of the City of Asheville to issue up to $9.75 million in bonds or notes to help finance it. According to 828 News NOW, the financing doesn't make the city responsible for repaying the developer's debt.
Developer Laurel Street plans a mix of studio, one-, two- and three-bedroom apartments. All 112 units would be reserved for households earning no more than 80% of the area median income. Of those, 41 would be set aside for households earning no more than 60%, and 31 for households earning no more than 30%. The apartments would stay income-restricted for 40 years.
Construction is scheduled to begin in December 2026, with completion expected in June 2028.
The building is the second phase of a larger plan on city-owned land. When council revised the deal in June 2025, BPR reported that the full 319 Biltmore Avenue development was planned at 221 apartments, with 162 of them affordable. The city had bought the property from Duke Energy for $5.3 million in 2020. Under the revised deal, Laurel Street Residential, a Charlotte-based developer, agreed to a 99-year ground lease instead of buying the land, and council approved more than $5 million in tax incentives and low-interest loans.
BPR also reported why the city had to sweeten the deal. Rising construction costs had outpaced projected rents, according to city affordable housing officer Sasha Vrtunski. The original timeline called for construction to finish by the end of 2025 at a cost of $51.9 million. The revised plan put the estimated cost at $70.2 million, with the first apartments not finished until late 2027.
For contractors, it's a familiar pattern: when material and labor costs rise faster than rents, affordable projects can stall until someone fills the gap.
23 Habitat homes in Shiloh
Across town, Asheville Area Habitat for Humanity plans to build 23 homes in the Shiloh neighborhood: 18 townhomes and five detached houses.
Council approved a conditional rezoning for the development, planned along Tried Street and West Chapel Road. The homes would be sold to qualifying households earning no more than 80% of the area median income, with affordability requirements lasting at least 20 years. Unlike the apartments, these homes would be for sale, giving families a path to ownership.
A construction timeline for the Shiloh homes hasn't been announced, 828 News NOW reported. The council materials the outlet reviewed also didn't spell out rents for the apartments or prices for the Habitat homes.
Council took other housing steps the same night. It accepted a $6 million grant from Destination: Home for a three-year homelessness prevention program called Right at Home, which aims to help at least 1,000 households in Asheville and Buncombe County. It also amended the Asheville Regional Housing Consortium's plan for nearly $4.7 million in federal HOME-American Rescue Plan funding. That plan sets aside about $3 million for affordable rental housing development, though the amendment still needs approval from the U.S. Department of Housing and Urban Development.
Why it matters for Contractors
With a December 2026 start and a June 2028 finish, 319 Biltmore B is a real job on the calendar for Western North Carolina builders, from site work and concrete to framing, mechanical, electrical, plumbing and finishes on a 112-unit building. No general contractor has been named publicly, so subs and suppliers who want in should reach out to Laurel Street ahead of the December start. The 23 Habitat homes are smaller in scale but another chance for local trades once a construction schedule is set; contractors can contact Asheville Area Habitat for Humanity about the Shiloh project. The $3 million in HOME-ARP money for rental housing could lead to more projects down the road. And the 319 Biltmore story is a reminder of how cost increases can stretch a project's timeline by years.