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City of Arden Hills – 20430 Comprehensive Plan Approved: September 28, 201809 Amended: December 12, 2016 7-15 7.4.2 Housing Affordability Affordable housing is an issue in every Twin Cities area community. With housing costs outpacing many wages, it is becoming increasingly important to focus on affordable housing. Because of the disparity of housing costs and wages throughout the Twin Cities, affordable housing continues to be a major initiative of the Metropolitan Council. According to the Metropolitan Council, housing is considered affordable if it is priced at or below 30 percent of the gross income of a household earning 560 percent of the Twin Cities median family income. In 20107, the area median income for the seven-county Minneapolis-St. Paul area adjusted by the Department of Housing and Urban Development for a family of four was $78,50090,400. Therefore, in 20107, housing was considered affordable if annual housing costs for a family of four do not exceed 30 percent of $47,100$45,200, which translates to $13,5604,130 per year or $1,13077.50 per month for housing. While the purchasing power of $1,177.50 130 per month depends on interest rates and other household factors, it could be sufficient to purchase a home that is priced in the range of $1530,000. Housing—along with food, clothing, transportation and medical care—is a necessity. For many households, it is their largest monthly expense. When households spend more than 30% of their monthly income on housing costs, they are considered “cost-burdened.” The inability of households to find housing they can afford has far-reaching effects. For example, a recent national report found cost-burdened households (especially low-income households experiencing cost burden) are forced to make cutbacks on food and health care spending, undermining their overall well-being.