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According to the 2025 report, As of early 2025, prices are up 60 percent nationwide since 2019 and still rising at a rate of 3.9 percent year over year, according to the S&P CoreLogic Case-Shiller US National Home Price Index. Prices increased in all four regions and in 88 of the top 100 largest metro areas. Consequently, the US median existing single-family home price hit a new high of $412, 500 in 2024, according to the National Association of Realtors (NAR). This is a shocking five times the median household income and significantly above the price -to income ratio of 3 that has traditionally been considered affordable.2 Further, the US homeownership rate fell in 2024 for the first time in eight years to 65.6 percent and continued downward to 65.1 percent in the first quarter of 2025. The largest decline occurred among households under the age of 35, dropping a full 1.4 percentage points in 2024. The largest population cohort in the United States (other than people born between 1946 and 1968) consists of people under the age of 35. This is an important consideration, especially in a community like Arden Hills that is located within the highly desired Mounds View School District. Without young families generating students, school districts which rely on a per -pupil funding formula can and may struggle to retain their position as a high -value educational opportunity. When it comes to multifamily housing, rental and ownership alike, many units have been added in the last half decade, however, average rents in Arden Hills are greater than $1800/month and significantly higher than average rents for the county and the Twin Cities metropolitan region. Fifty percent of renters in Arden Hills are considered cost burdened. Additionally, vacancy rates in multifamily buildings are low, although not as low as the supply of for -sale housing. Vacancy rates in the third quarter of 2025 were hovering around 6 percent for the region. Healthy vacancy rates are between five and 10 percent. The magnitude of unmet housing needs has prompted state and local governments to encourage development of lower -cost housing options. Many are reforming zoning laws to increase the construction of smaller apartment buildings and accessory dwelling units (ADUs). Fourteen states now preempt local limits in some capacity. The Minnesota Legislature has considered several preemptions that have not passed during the last three sessions. Recent uncertainties associated with labor supply, wages, and access to construction materials have raised concerns for homebuilders which will more likely than not have a related and likely greater impact on those looking for places to live. Homebuilders estimate that the newly imposed tariffs on construction materials will increase new home prices by $10,900 apiece, according to an April 2025 survey by the National Association of Home Builders (NAHB)3. Changing interest rates could have an even greater impact on costs for builders and buyers of both single- and multifamily housing. And overall economic uncertainty surrounding the implications of recent policy changes could continue to slow market activity as consumer confidence languishes at near -record lows. Arden Hills, according to the most recent available data from the U.S. Census Bureau, has approximately 3,400 households. Of those, just over 18% are adults living alone, nearly 40% are Z The State of the Nation's Housing 2025 1 Joint Center for Housing Studies, accessed 10/06/2025 s Builder Confidence Plateaus at Relatively Low Level I NAHB, accessed 09/22/2025 Page 2 of 9