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Market Trends A significant change in recent years that has affected housing in Mounds View is the real estate market. Housing values in Mounds View rose in the 1970’s and 1980’s. This trend changed dramatically in the later 1990’s and in the early 2000’s when home values around the country increased rapidly. In some cases, home values increased 10 to 15 percent each year (well above the inflation rate). The real estate issues now are the recent rise of foreclosures throughout the area and the country. The number of Sheriff’s sales in Ramsey County increased 125 percent between 2005 and 2006 and the numbers continue to increase. The increase in foreclosures raises concerns about the impact this turnover could have since these homes are vacant and the properties may not be maintained. Foreclosures are also affecting the value of other properties and the negative market psychology may keep older owners from moving, reducing housing opportunities for young families. These homes, however, also provide an affordable housing option for young families when the owners of foreclosed homes offer them for sale at discounted prices. Future Housing Needs Neighborhood Preservation The older neighborhoods are seen as a key part of the City’s affordable housing stock where reinvestment is vital to keeping the neighborhood character, quality of life and housing choice. The City should consider doing a study to prepare a more comprehensive and long-range plan to establish housing strategies. The intent of this study would be to encourage reinvestment that results in an improved housing stock while keeping affordability levels and preserving the neighborhood’s character. The areas of housing most likely to need study and assistance are:  Detached and/or attached single-family residential neighborhoods  Housing that is more than 40 years old  Where the average assessed value is less than the average for the City  Areas characterized by a distinct housing type that may limit reinvestment. The City also should consider developing neighborhood preservation initiatives. To ensure that neighborhoods in the city remain strong and vital, government housing policies need to encourage reinvestment in the housing stock, promote affordable housing and life cycle choices. Development Opportunities Like many older cities, development opportunities in Mounds View are primarily limited to infill and redevelopment. Infill development will more likely occur as the owners of larger residential lots and the few remaining vacant parcels subdivide or redevelop their properties. Redevelopment may occur primarily along the County Highway 10 corridor. The City anticipates that residential development will occur at higher densities in the redevelopment areas and could provide housing alternatives including apartments, townhomes, condominiums and senior housing. 7