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AGENDA ITEM - 3D <br />-z3FQEN HILLS <br />MEMORANDUM <br />DATE: October 13, 2025 <br />TO: Honorable Mayor and City Councilmembers <br />Jessica Jagoe, City Administrator <br />FROM: Jake Reilly, Community Development Director <br />SUBJECT: Affordable Housing Considerations <br />Budgeted Amount: Actual Amount: Funding Source: <br />N/A N/A N/A <br />Council Should Consider <br />Council should consider and provide direction on different approaches to affordable housing and <br />how those approaches might address housing affordability in Arden Hills. <br />Background <br />Housing is considered affordable when it costs the owner or renter not more than 30 percent of <br />their income, including taxes, utilities, and insurance. Some measures also include transportation <br />costs because most people must travel to and from the workplace. <br />According to recent data from the U.S. Census bureau, approximately 22% of households in Arden <br />Hills experience a housing cost burden, meaning they spend more than 30% of their income on <br />their rent and/or mortgage. The median estimated market value of a home in Arden Hills is greater <br />than $420,000. <br />According to the most recent local market data issued in August by the Saint Paul Area Association <br />of Realtors indicates that the median sales price of a home in Arden hills was $465,000 and there <br />is an approximately three-month supply of for -sale homes. A healthy supply of for -sale homes is <br />between five to six months of inventory. That balance shows a balanced market where neither <br />buyers nor sellers have a significant advantage. <br />In the county, state and nation, the statistics are similar. In fact, the Joint Center for Housing <br />Studies, which releases an annual report, "The State of the Nation's Housing"' identifies a very <br />uncertain market for housing of all kinds in the United States. Because home sales prices to income <br />ratios are soaring and there are more cost -burdened renters than ever, new homebuyers are <br />increasingly priced out. The Twin Cities region is on par with Chicago, Madison, and Phoenix, for <br />example. <br />1 The State of the Nation's Housing 2025 1 Joint Center for Housing Studies, accessed 10/01/2025 <br />