5_Exhibit B_Resolution_Attachment 2

Housing Constraints City of Pleasanton | C-41 Section C.3 Non-Governmental Constraints Market factors over which a local government has only limited ability to control can influence the jurisdiction’s capacity to develop more housing. These market-related constraints include land cost, construction cost, and the availability of financing. An assessment of these non- governmental constraints can inform the development of potential actions that can ameliorate its impact. C.3.1 Housing Supply/Conditions Market Overview: For-Sale As shown in the Needs Assessment (Appendix A, Figure A-40), the region’s home values have increased steadily since 2000, besides a decrease during the Great Recession. The rise in home prices has been especially steep since 2012, with the median home value in the Bay Area nearly doubling during this time. The typical home in value in Pleasanton was estimated at $1,213,900 in December 2020, a 143.8 percent increase from $497,900 in 20015. Since the beginning of the recovery from the Great Recession in 2012, interest rates have been maintained at low levels of 3.5 to 4.5 percent. Due to the COVID-19 pandemic, however, national 30-year mortgage rates have dropped to historically low levels, declining to 2.7 percent in late 2020. When interest rates are low, capital investment and housing production generally increase, and more people are likely to take out a mortgage than when interest rates are higher. In addition, consumers are able to borrow more money for the same monthly payment. Extremely low interest rates are one of the factors that has led to overall increased home values in Pleasanton above what has been seen in the past several years. Coupled with the general desire during the pandemic to move from denser to more spacious neighborhoods, the housing market will likely continue to be competitive in the near future. Market Overview: Rental As shown in the Needs Assessment (Appendix A, Figure A-43), Pleasanton rents are higher than rents in Alameda County and the Bay Area as a whole. According to U.S. Census data, the median rent paid in Pleasanton in 2019 was $2,290, increasing 62.4 percent in the past 10 years, while rents in Alameda County have increased 56.2 percent. Meanwhile, median rent in the Bay Area region has increased just over 54.0 percent in the same time period. The rate of rent increase in Pleasanton has outpaced both the County and the Bay Area. 5 According to the Zillow Home Value Index (ZHVI), in July 2021, typical home value increased to $1,486,151 in Pleasanton, a 22.4 percent increase since December 2020.