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Edina Housing Task Force <br />DRAFT March 2006 <br />Chart A. This graph shows the percentage by which average Incomes (diamonds) and <br />average house prices (circles) Increased from 1997. Incomes rose by about 30% over <br />the period, while house prices rose by 85%. <br />Housing in Edina <br />Housing is expensive and getting <br />more expensive as land becomes <br />more valuable. Home prices in <br />Edina have typically been among <br />the highest in the Twin Cites met- <br />ropolitan area. The recent surge <br />in home prices was particularly <br />strong in Edina: between 1997 <br />and 2004, the average sales price <br />of a home in Edina increased by <br />$185,000 from about $215,000 to <br />over $400,000, or approximately <br />12% a year'. (See Appendix B). <br />At the same time, the average in- <br />come for households in Edina has <br />increased much more slowly, ris- <br />ing by 4.4% per year from $ <br />33,000 in 1997 to $44,000 in <br />2004'. Chart A shows this in- <br />crease in home prices compared <br />to Incomes. This means that <br />housing in Edina is less affordable <br />today than in 1997. (See Appen- <br />dix E for meaning of "affordable"). <br />Another sign of the market <br />strength and declining affordability <br />of Edina's housing is the growing <br />' 2000 US Census <br />2 Minnesota Department of Employment and Economic Development <br />