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<br />City of Ramsey <br />MASTER HOUSING PLAN <br />DRAFT <br /> <br />---......-...------..--..---------...--..----.------..------.-------------...------------- <br /> <br />Housing Cost: Ownership <br /> <br />One of the most important factors in analyzing the housing stock is its affordability. However, with <br />housing prices increasing rapidly, it is difficult to determine the true market value of housing. The <br />County Assessor's Office is the best source of current information available to cities to determine <br />housing values. Table 2 outlines the estimated market value of housing in Ramsey. The table breaks <br />down this data according to different categories of affordability. <br /> <br />Table 2: Affordability of Ownership Housing in Ramsey <br /> <br />Affordability Level Approximate Number of Percentage of <br /> Affordable Market Houses at this Ramsey Homes at <br /> Value* Estimated Market This Level <br /> Value* * <br />Affordable at 30% of Under $70,000 22 .03% <br />AMI** <br />Affordable at 60% of AMI $70,001 to $152,000 250 3.3% <br />Affordable at 80% of AMI $152,001 to 2,177 28.4 % <br /> $206,800 , <br />Affordable at 100% of AMI $206,801 to 2,740 35.8% <br /> $250,000 <br />Affordable at Over 100% of Over $250,000 2,464 32.2% <br />AMI Only <br /> <br />* These affordable home prices are approximate, based on a household spending 30% of their income on mortgage and <br />obtaining a mortgage interest rate of 6.5%, with no down payment. ' <br />**The median total housing value for 2007 is $216,050 with the average total housing value at $249,813. <br />** AMI is "area median income" and represents the median household income in the seven county metropolitan area. <br />This is approximately $78,500 in 2007. <br /> <br />About32% of the market-rate, ownership housing stock in Ramsey is affordable to households <br />earning 80% of Area Median Income (AMI), a common standard used in assessing the affordability <br />of housing. However, there are considerably fewer homes (approximately 4%) available for lower <br />, . <br />income households in the 60% and 30% of AMI categories, as Table 2 indicates. Future (2011- <br />2020) metropolitan area targets for affordable housing will focus on the lower income households <br />making at or below the 60% AMI rather than 80% AMI. <br /> <br />City of Ramsey Master Housing Plan <br /> <br />(draft #1) November 2007 <br />