The City of Woodbury announced the relaunch of its First Time Homeownership Program in August 2025, following a year of strategic planning and discussion. The program, operated by the Woodbury Housing and Redevelopment Authority since 2009, provides low-interest deferred loans to income-qualified first-time homebuyers to help cover down payments and closing costs.

The city described the program as addressing the biggest barriers to homeownership by helping families overcome rising costs of entry into the housing market. Beyond the homeownership program, Woodbury supports affordable rental housing through federal and local grants, density bonuses, and tax-exempt conduit bonds, according to the presentation.

Woodbury ranked sixth in affordable housing construction in the Twin Cities from 2018 to 2022, according to Metropolitan Council data cited by the city. The city's longstanding commitment requires 50 percent of new housing to be multifamily, including townhomes, twinhomes and apartments, which officials said has driven production of attainable housing while maintaining community character.

City officials expressed concerns about proposed state legislation that could limit local zoning authority and reduce community input in development processes. The proposed measures would allow additional housing units on residential lots with minimal city review, eliminate minimum lot sizes, and restrict cities' ability to regulate housing design, including large apartment buildings.

Woodbury plans to begin updating its comprehensive plan next year, which serves as the blueprint for strategic growth over the next 20 years. The city will continue advocating against restrictive state housing legislation while preparing for its 2050 Comprehensive Plan update.